(Trid) Planning Report for Noble Station in Abington Township

TRANSIT REVITALIZATION INVESTMENT DISTRICT (TRID) PLANNING REPORT FOR NOBLE STATION IN ABINGTON TOWNSHIP

FINAL REPORT – JUNE 6, 2013

FINAL REPORT SUBMITTED TO:

Abington Township 1176 Old York Road Abington PA 19001

FINAL REPORT SUBMITTED BY:

Econsult Solutions, Inc. 1435 Walnut Street, Suite 300 Philadelphia, PA 19102

CHPlanning 1429 Walnut Street Suite 1601 Philadelphia, PA 19102

Econsult Solutions | 1435 Walnut Street, Ste. 300 | Philadelphia, PA 19102 215-717-2777 | econsultsolutions.com TRANSIT REVITALIZATION INVESTMENT DISTRICT (TRID) PLANNING REPORT FOR NOBLE STATION IN ABINGTON TOWNSHIP ii

TABLE OF CONTENTS

1.0 Overview……………………………………………… ...... 1

2.0 TRIDS in Theory and Practice...……………………… ...... 3

3.0 Past Planning Studies………………………………… ...... 8 4.0 Stakeholder Engagement………………………… ...... 15 5.0 Market Assessment……………………………………… ...... 18 6.0 Investment Phasing and Improvement Options ...... 29 7.0 Financial Analysis………………………………………… ...... 55 8.0 TRID Management and Stakeholder Participation...... 75 9.0 Catalyzing Developments ………………………… ...... 78

10.0 Next Steps……………………………………………… ...... 81

Appendix A – About Econsult Solutions, Inc………………...... A-1

Appendix B – About CHPlanning…………………… ...... A-2 Appendix C – Transit Revitalization Investment District Act of

2004………………………………………………………...... A-3 Appendix D – Proposed Transit Revitalization Investment

Districts in Pennsylvania…………………………… ...... A-4 Appendix E – Stakeholder Interviews Conducted………… ... A-5

Appendix F – Development and Improvement

Recommendations Advanced in Past Planning Studies…………………………… ...... A-6

Appendix G – Current Characteristics of Parcels Located within the Proposed TRID Boundaries………… ...... A-7 Appendix H – Composition of Increase in Assessed Value within TRID Boundaries…………………… ...... A-11 Appendix I – Composition of Increase in Property Tax Revenues within TRID Boundaries……………………… ...... A-15 Appendix J – Draft Form of TRID Agreement…………… ...... A-19

1.0 OVERVIEW

1.1 Report Purpose

Abington Township, located in Montgomery County, commissioned Econsult Solutions, Inc.1 and CHPlanning2 (collectively, the ESI team) to produce a planning report in support of a proposed Transit Revitalization Investment District (TRID) around the Southeastern Pennsylvania Transportation Authority’s (SEPTA) Noble Regional Rail Station. Made possible by the Commonwealth of Pennsylvania’s Transit Revitalization Investment District Act of 2004, TRIDs are meant to encourage collaboration between municipalities and transportation authorities to the end of advancing transit-oriented development (TOD) initiatives.

The Township is interested in catalyzing a TOD project next to the Station, and in encouraging mixed-use development, infrastructure investments, streetscape improvements, and pedestrian-friendly amenities in the overall area around the Station. The Township believes that creating the Noble TRID will help advance these interests, organize stakeholders, and catalyze funding.

This planning report builds from several previous reports commissioned by the Township that have focused on the characteristics, needs, and possibilities of this area. In fact, almost all of the development and improvement concepts articulated in this planning report emerge from these previous reports. The purpose of this planning report is to place those concepts within a TRID framework, and to discuss the implications of those concepts as organized in that manner in terms of phasing and financing.

1.2 Stakeholder Engagement, Past and Future

The content in this planning report is inclusive of significant stakeholder feedback. However, it is important to note that the content contained in this planning report merely represents a starting point in what should be an ongoing discussion with both key stakeholders and the general public. Official TRID Planning Studies typically involve at least one large public meeting in which preliminary concepts are introduced and discussed, and they are also typically published after key stakeholders have sufficiently reviewed and approved their content. The effort that culminated in this planning report did not include a public meeting, and while stakeholder interviews were conducted the content from this planning report has not been fully vetted or accepted by those stakeholders.

1 See Appendix A for a summary of Econsult Solutions, Inc. 2 See Appendix B for a summary of CHPlanning.

Therefore, as noted above, this planning report should be considered a starting point for review by key stakeholders and by the general public, from whom reactions should be elicited and discussions initiated to the end of moving forward with concepts that are mutually agreeable. While stakeholders were consulted as part of this planning report effort, and while their feedback was integral to the formation of the main points contained within, it should not be construed from the publication of this planning report that any of the recommendations advanced here are mutually agreed upon by all stakeholders, and in fact it is possible and perhaps likely that additional outreach will yield changes in the way in which this effort proceeds.

1.3 Report Outline

This planning report consists of nine content sections, as follows:

 Section 2 – Background on TRIDs, both their conceptual objectives and how they have been actually envisioned in specific communities throughout the Commonwealth.

 Section 3 – A summary of the past reports from which this planning report builds, with special attention to key findings that are brought into the TRID framework.

 Section 4 – A description of the stakeholder engagement process that went into the development of this planning report.

 Section 5 – An overview of past and present market assessment findings and their implications for the development and improvement recommendations that follow.

 Section 6 – A description of the proposed TRID boundaries and of the phasing of developments and improvements suggested for the TRID.

 Section 7 – A financial analysis of how much the TRID will generate from incremental tax revenues from new developments to fund proposed improvements, and how much more the relevant taxing jurisdictions will generate in tax revenues over time.

 Section 8 – A description of the proposed management structure for the TRID.

 Section 9 – Guidance on what is needed to actually catalyze the developments that are being proposed for the TRID.

 Section 10 – A review of the next steps that the Township should take to implement the TRID.

2.0 TRIDS IN THEORY AND PRACTICE

2.1 Overview

The purpose of this section is to provide an overview of TRIDs, what they are intended to accomplish, and how they have been actually envisioned in communities throughout the Commonwealth. It is important to provide this context so that the spirit of TRIDs is understood, since those concepts serve to guide how the Noble TRID should be conceived and implemented.

2.2 Transit Revitalization Investment District Act of 2004

The Transit Revitalization Investment District Act of 2004 is meant to encourage collaboration between municipalities and transportation authorities to the end of advancing TOD principles and initiatives. With participation from the Delaware Valley Regional Planning Commission (DVRPC) in its creation, the Act was passed by a 194-1 vote in the Pennsylvania House of Representatives and a 47-0 vote in the Pennsylvania Senate.3

This enabling legislation provides unprecedented flexibility and funding in support of joint TOD efforts by municipalities and transit authorities, and requires extensive engagement with the affected neighborhoods and stakeholders. TRIDs enable municipal governments and transit authorities to more closely coordinate transportation infrastructure, land use, and private development in the following ways:

 Providing incentives for transit-oriented development

 Establishing mechanisms to capture the value added by development around transit stops

 Encouraging community involvement in the location, design, and implementation of development activities

 Receiving priority for grants and technical assistance through the state’s Department of Community and Economic Development (DCED)

Essentially, the TRID Act represents the Commonwealth’s position on TODs. It represents its approval of TODs at the local level, affirms the importance of cooperation between municipalities and transit authorities to make TODs happen, honors the role of

3 See Appendix C for a copy of the Transit Revitalization Investment District Act of 2004.

Econsult Solutions | 1435 Walnut Street, Ste. 300 | Philadelphia, PA 19102 | 215-717-2777 | econsultsolutions.com TRANSIT REVITALIZATION INVESTMENT DISTRICT (TRID) PLANNING REPORT FOR NOBLE STATION IN ABINGTON TOWNSHIP 4 neighborhoods in advancing TODs, and provides a legislative mechanism and upfront funding in support of development projects and public improvements.

2.3 The Premise behind Transit-Oriented Developments

While there are different opinions of what constitutes a TOD, most practitioners agree that they refer to a mixed-use development in close proximity to a transit stop, which provides a community with a variety of transportation options, multiple uses in a compact setting, and pedestrian-friendly design.

Notably, TODs are meant to be transit-oriented and not just transit-proximate. In other words, the goal is not just to site development in close proximity to a transit stop, but to orient the development (and any related infrastructure and improvements) to the end of maximizing the value associated with the transit stop.

When done right, TODs confer a number of important economic, environmental, and social benefits to a wide range of stakeholders. Many of the benefits of TODs accrue to their immediate neighborhood residents, who are best positioned to enjoy the improved pedestrian-friendly amenities and the mobility gains, and to merchants, who stand to gain from increased foot traffic and accessibility.

2.4 The Premise and Mechanics behind TRIDs

The intention of TRIDs is to advance TODs using the tools provided in the TRID legislation. In other words, the TRID Act of 2004 represents the Commonwealth’s public policy interest in encouraging TODs, by enabling the following things to occur to help make TODs possible:

1. Greater collaboration between municipalities and transit authorities;

2. The use of tax increment financing (TIF) (i.e. value capture) to utilize increased property tax revenues generated within a TOD area for use within the TOD area;

3. A framework for encouraging public and stakeholder participation; and

4. Additional Commonwealth resources and attention.

TRIDs allow municipalities and transit authorities to designate an area up to a ½-mile of a transit station as a TRID, and to use value capture to generate funds in support of improvements that will help make possible the actual TOD project as well as infuse the overall area with TOD elements. TODs and TIFs are not uncommon throughout the

Commonwealth; TRIDs can be thought of as a fusing of the two, with TIF being the mechanism for making possible the TOD.

On another level, TRIDS represent a partnership between taxing jurisdictions and a transit authority to focus on a particular transit-proximate area, capture incremental tax revenues for localized use, and commit to mutual attention and mutual investment for mutual benefit. It is in this spirit that the Township seeks the participation of SEPTA, the School District, and the County for the Noble TRID.

2.5 The Premise behind TRID Planning Studies

The premise behind TRID Planning Studies is to unlock the potential a proposed TOD, and to ensure adequate public and stakeholder participation in their planning and implementation. TRID Planning Studies, therefore, typically cover the following components:

1. Development of TRID boundaries, to roughly within a ½-mile radius from the designated transit stop.

2. Assessment of the developments and improvements that should be conceived for the area within the TRID boundaries.

3. Financial analysis of the value capture potential of the TRID, and how those funds relate to the improvements being proposed for the TRID.

4. A TRID agreement that articulates the proposed organizational structure of the TRID.

5. A public and stakeholder engagement process that ensures adequate feedback on the above components.

As noted above, this planning report covers the first four of these components. While considerable stakeholder engagement was undertaken in the development of this planning report, additional public outreach and stakeholder contact should proceed from here, with this planning report being seen as a preliminary document intended to initiate and frame future discussion.

2.6 Other Proposed TRIDs in Pennsylvania

Since 2004, 12 TRIDs have been proposed in the Commonwealth (see Table 2.1).4 None have advanced to the implementation phase yet, so it is possible that the Noble TRID will be the first in the Commonwealth.

Table 2.1 – Proposed TRIDs in the Commonwealth of Pennsylvania

Station/Location Municipality(ies) Transit Authority(ies) Marcus Hook Marcus Hook Borough SEPTA, AMTRAK Bryn Mawr Lower Merion Township SEPTA, AMTRAK Ambler Borough of Ambler SEPTA Cryodon Bristol Township SEPTA, AMTRAK Beaver County Transit Rochester Transportation Center Borough of Rochester Authority Port Authority of Allegheny Beechview Pittsburgh County Port Authority of Allegheny Lawrenceville, Strip District Pittsburgh County Port Authority of Allegheny Eastside Pittsburgh County Mt. Lebanon, Doromont Junction, Port Authority of Allegheny Pittsburgh Potomac Avenue County 46th Street Station, Temple Station Philadelphia SEPTA Lancaster Station Lancaster City, Manheim Township AMTRAK Greensburg Station, Westmoreland Westmoreland County Greensburg County Transit Center Transit Authority, AMTRAK Source: Econsult Solutions, Inc. (2013)

2.7 Lessons Learned to Date

Although the enabling legislation is almost a decade old, it is still open for interpretation and adjustment. This is particularly true because even though 12 Planning Studies have

4 See Appendix D for additional detail on proposed TRIDs in Pennsylvania.

Econsult Solutions | 1435 Walnut Street, Ste. 300 | Philadelphia, PA 19102 | 215-717-2777 | econsultsolutions.com TRANSIT REVITALIZATION INVESTMENT DISTRICT (TRID) PLANNING REPORT FOR NOBLE STATION IN ABINGTON TOWNSHIP 7 been undertaken, no TRIDs exist yet. Understanding why this is can assist the Township in knowing how to proceed in advancing the Noble TRID.

Some of the lack of progress can be attributable to external forces. Notably, a major economic recession has shrunk both the interest by developers in commencing real estate projects and the ability of the Commonwealth to provide gap financing in supporting them. These macro-economic conditions have soured development of all kinds throughout the Commonwealth, and are a major reason why no TRID has been able to proceed to implementation.

However, two other reasons are specific to TRIDs. First, there is still some confusion as to what the legislation does and does not allow, in terms of structuring TRIDs. It is understood that the legislation was written in an intentionally open manner, so as to provide maximum flexibility for those municipalities and transit authorities interested in implementing a TRID. However, that lack of details has worried some who do not want to risk exposure should they organize their TRID in a way that results in a legal challenge. To cite one example, it is unclear whether the legislation allows TRIDs to be implemented in phases over time, such that incremental tax revenues can be captured for the TRID beyond the original 20-year time frame proscribed in the legislation.

Second, because the enabling legislation is new and no TRIDs have actually been implemented, there is an understandable hesitancy by municipalities, transit authorities, and other key stakeholders such as school districts, counties, and developers to commit to a TRID without fully knowing what such a commitment entails. In other words, there is no blueprint or first example from which lessons can be learned, positive characteristics emulated, and negative characteristics avoided. It is likely that even if the first reason above is resolved (e.g. through amendments, aspects of the legislation are made clearer), many stakeholders may want to see how TRIDs are working in other parts of the Commonwealth before agreeing to participate in one of their own.

2.8 Takeaways for the Township

Based on this overview of TRIDs in theory and practice, it behooves the Township to adhere to the principles behind TRIDs and TODs when envisioning the Noble TRID, but also to be realistic and thorough in internally evaluating its comfort level with a TRID as well as externally cultivating agreement with other key stakeholders. While being the first TRID in the Commonwealth may seem like an ominous path to take, since there will be no other TRIDs from which to benchmark and learn, it can also present an opportunity for the Township to rally Commonwealth-level support and obtain the necessary flexibility, financing backing, and organizational advocacy to implement the Noble TRID.

3.0 PAST PLANNING STUDIES

3.1 Overview

The purpose of this section is to identify and summarize the past planning studies from which were drawn concepts for the proposed Noble TRID. The Township’s extensive report of the overall area provides a comprehensive palette of development, improvement, and design recommendations. Since each of these past planning studies involved a public and stakeholder engagement component, the recommendations that emerge from them can be considered to have been vetted to some level of depth. And, since these past planning studies were done sequentially, the recommendations that are advanced from each successive report represent those that have emerged from multiple levels of scrutiny.

3.2 Summary of Previous Reports

This report draws from five past planning studies commissioned the Township, some of which focused specifically on the Noble Station:

1. Abington Township Comprehensive Plan (Abington Township, 2007)

2. Old York Road Corridor Improvement Plan Market Study (AKRF, 2007)

3. Route 611 & 263 Corridor Study Phase 1 Report (DVRPC, 2008)

4. Old York Road Corridor Improvement Study (McCormick Taylor, 2010)

5. Abington Noble Transit-Oriented Development Plan (Design Collective, 2012)

Each of these reports is summarized in this section, with particular focus on elements that have informed this planning report. The reports are addressed in chronological order because, as noted above, the survival of common recommendations across reports indicates their continued relevance across several years and multiple reviews.

3.3 Abington Township Comprehensive Plan Update (2007)

Encouraging TOD and compact, mixed-uses that stimulate non-automotive transportation modes are major themes in the 2007 Comprehensive Plan Update for multiple plan elements, beyond merely transportation. Some of the objectives for various plan elements related to TOD include:

Housing

Objective D: Encourage housing which maximizes the use of existing transit infrastructure to achieve a greater utilization of available economic resources.

Objective E: Develop/redevelop communities which allow for living, walking, and working within Abington Township.

Natural Resources/Green Space

Objective D: Encourage and control commercial development along major highways by promoting mixed use development in these areas and simultaneously encourage the incorporation of green spaces with medium to high density residential development along commercial corridors.

Transportation

Objective A: To relieve traffic congestion and provide for the safe and efficient access to commercial, recreational, and institutional centers.

Objective B: Promote and encourage the use and expansion of public transportation.

Objective C: Provide for pedestrian and bicycle paths and walkways to encourage non- vehicular movement systems throughout the Township.

Objective D: Facilitate the current and future safety and movement of vehicles throughout the Township’s roadway system.

Objective E: Encourage Transit Oriented Development and the development of medium to high density residential uses at transportation nodes and in commercial districts. Work with neighboring municipalities to enhance connections for non-vehicular movement.

Economic Development

Objective A: Improving the Township’s commercial corridors (Old York Road, Easton Road (Roslyn), Easton Road (Glenside), Keswick Village. Improvements of these commercial corridors should go beyond streetlights, benches and pavers and should examine architectural continuity to give identity, tax incentives to promote investment in business and/or property and zoning changes to allow greater flexibility.

Objective E: Promote a mixture of uses for business districts along main arteries (residential, retail, office).

Land Use and Zoning

Objective D: Promote a mixture of uses within our commercial zoning districts to develop a mutually supporting climate among uses.

As the official document that circumscribes and informs the Township’s approach to land use, this report is an important guiding statement concerning its land-based priorities and aims. It is therefore important for the Noble TRID to respect and fulfill these objectives.

3.4 Old York Road Corridor Improvement Plan Market Study (2007)

This plan was a comprehensive market assessment of the Old York Road corridor in order to determine markets that are underserved and what types of development could be successful along Old York Road. This study was incorporated into the Old York Road Corridor Improvement Study, discussed in more detail later in this section. The study focused on four market areas: (1) Housing, (2) Retail, (3) Office, and (4) Hotel.

This analysis indicates that population is expected to grow county-wide, and that the Township can expect a proportional increase. Some of this growth will likely be from medical personnel working at Abington Memorial Hospital that want to live closer to work, and from increased off-campus housing for Penn State Abington students. This increase in young professionals and students will translate into an increased demand for apartments and high-end condominiums.

The retail market indicated that the capture rates for convenience goods and auto sales are over 100 percent, indicating that people outside the market area likely come to this area to shop for those goods. Markets that are underserved in the area consist of shopper’s goods (clothing and accessories, hobby, office, etc.) and eating and drinking places, which had capture rates of 69 percent and 43 percent, respectively. This means that there is an unmet demand for these types of retail establishments. This assessment was further supported by focus groups in which many members of the public indicated a desire for more sit-down restaurants and smaller retailers similar to nearby downtown Jenkintown. This is an important finding because the close proximity of other municipalities to the Township means that unmet demand within the Township can easily leak to other jurisdictions.

The office market analysis indicated that this sector was fairly strong along Old York Road, although the opening of several new office buildings will likely meet this demand. Therefore, the existing demand for office space is limited for the near future. It was noted that the Scully building, located directly adjacent to the Noble Station, has a vacancy of about 25 percent. However, the study also indicated that, as absorption takes available and planned office space off the market, the climate for new development may improve.

The hotel market was found to be fairly robust, with higher than average occupancy rates for most of the year. The economy hotel market was underserved, with only 25 percent of the supply in that category, so the study concluded that another hotel, most likely at the economy level, can be supported in the area.

The study identified several “Opportunity Clusters” that recognized nodes of economic activity along the corridor. This included a TOD cluster at the Noble Station from Rydal Road to the Abington Free Library at Old Orchard Road.

3.5 Route 611 & 263 Corridor Study Phase 1 Report (2008)

This study examined long stretches of the Route 611 (Old York Road) Corridor and the Easton Road Corridor through the boroughs of Jenkintown and Hatboro and the townships of Abington, Cheltenham, and Upper Moreland. The study provided general recommendations for the entire study corridor as well as what were deemed “Priority Areas.” The Noble Station area was identified as one of these Priority Areas.

Corridor-wide improvements included recommendations for a variety of users and transportation modes including:

 Transit

 Highway

 Parking

 Pedestrian

 Bicycle

 Gateway treatments

 Wayfinding signs

Some specific issues and recommendations at Noble Station were outlined in the report:

Issues

 Existing development is too auto-centric to be transit supportive.

 Potential for significant infill development.

 Single-use parking.

 Poor pedestrian crossings at Harte Road.

Recommendations

 Create Transit-Oriented Development overlay district, ensuring higher-density development, with transit-supportive uses.

 Rezone parcels on the west side of Old York Road, to ensure street-edge, mixed- use development, with transit-supportive form.

 Connect existing commercial parking and encourage shared parking arrangements with the transit station. Structured parking should be supported.

 Enhance pedestrian pathways and crossings, building easy accommodations between the Noble Station, retail, and parking facilities.

 Adapt zoning to facilitate higher-density, street edge development along the Fairway.

 Develop a bicycle corridor on Highland Avenue and Rockwell Avenue by adding lane striping or paving materials and street trees; other improvements would provide access to the Fairway and Noble Station.

 Create an official map to establish a new street network as this area is developed.

3.6 Old York Road Corridor Improvement Study (2010)

This was a comprehensive study for the entire Old York Corridor through Abington Township from Jenkintown Borough to Upper Moreland Township. It utilized the 2007 market study and examined overall conditions with regard to several factors such as pedestrian and bicycle mobility, land use, zoning, transit, traffic, etc. and identified three (3) priority areas. Overall recommendations and guidelines were developed for the entire corridor and generally for the priority areas. In addition, specific plans and future development for each priority area were developed.

The plan for the Noble Station consisted of new circulation for pedestrians, bicyclists, and traffic, land use recommendations, sustainability guidelines, suggested methods to increase transit ridership, and a phased implementation strategy. This plan was used by the study team to help guide the urban design plans for the area.

3.7 Abington Noble Transit-Oriented Development Plan (2012)

This was a very detailed study that focused specifically on developing a focal point for a proposed TOD adjacent to the Noble Station site. The study area was defined as the section of land bounded by the SEPTA regional rail tracks on the south, Old York Road on the west, The Fairway to the north, and the Bryner Chevrolet lot on the east. This area was identified as a candidate for redevelopment due to the large amount of existing surface parking, which could be redeveloped into a mixed- use center that could anchor and encourage further transit-oriented development in the area.

The study assessed different options for a mixed-use parking garage on the parking lot located behind the Scully building. A series of charrettes to solicit public input were performed in October 2011. Through this process, several concepts were developed for the mixed-use development, including preliminary architectural layouts. These options were evaluated with respect to traffic impacts, parking requirements, and financial feasibility.

This study was vetted through a public process and was used to a great extent by the project team in evaluating many of the

Econsult Solutions | 1435 Walnut Street, Ste. 300 | Philadelphia, PA 19102 | 215-717-2777 | econsultsolutions.com TRANSIT REVITALIZATION INVESTMENT DISTRICT (TRID) PLANNING REPORT FOR NOBLE STATION IN ABINGTON TOWNSHIP 14 alternatives for future development in the area. A TRID was specifically cited as a funding option, and market feasibility and financial feasibility analytics were included in the report.

3.8 TRID Planning Report (2013)

This planning report, which explores a TRID centered on the Noble Station, is intended to build from the previous planning studies and move the Township towards implementation of a TRID and fulfillment of the many development and improvement objectives that have been advanced in the area. Though TRID Planning Studies tend to contain significant coverage of area characteristics, market feasibility, and design concepts, the existence of the wealth of planning studies that have preceded this report means that it can focus on organizational structure, financial analysis, and implementation next steps as opposed to quantitative research or concept development.

The mixed-use parking garage and residential building described in detail in the 2012 TOD report serves as the focal point of the proposed Noble TRID. The 2012 report went into great detail regarding this specific development, and this planning report relies on that report with regard to this development and the associated public improvements.

4.0 STAKEHOLDER ENGAGEMENT

4.1 Overview

The purpose of this section is to articulate the stakeholder engagement process that went into the development of this planning report. While incomplete – additional public and stakeholder outreach will be an essential component of the Township’s work to build from this planning report towards the implementation of the Noble TRID – this process successfully touched all key stakeholders and resulted in a meaningful understanding of the perspectives and concerns represented by them.

4.2 The Importance of Stakeholder Engagement

In order for TRIDs to be successful, coordination and collaboration between many different interests, both public and private, is required. Public sector stakeholders that will be directly participating in the TRID, including the Township, Abington School District, Montgomery County, and SEPTA, need to be meaningfully engaged so that their perspective and concerns are represented. Private sector stakeholders must not be forgotten either: without private developers, there are no new developments for a TRID, and without input from residents and businesses, recommendations concerning developments and improvements will be disconnected from their actual users. It is for these reasons that the TRID legislation codifies a stakeholder engagement component to Planning Study development.

4.3 Stakeholder Interviews

Ten interviews were conducted in late 2012 and early 2013.5 The following public sector stakeholders were contacted as part of this planning report:

 SEPTA – Would be a part of the TRID entity

 Township – Would be part of TRID entity and provide funding through value capture tax increment financing

 Abington School District – Could be part of TRID entity and provide funding through value capture tax increment financing

5 See Appendix E for a list of stakeholder interviews.

 Montgomery County – Would be part of an Advisory Committee and provide funding through value capture tax increment financing

 DVRPC – Could provide support in identifying and attracting interested developers and possible financial assistance sources

The following private and quasi-public sector stakeholders were contacted as part of this planning report:

 Multiple developers and landowners with familiarity with the area o Brandolini Companies o Orens Brothers o Goodman Properties o Don Del Associates o Scully Company o Bryner Chevrolet o Sussman Automotive

 Neighborhood associations o Rydal East/West o Rydal Park o Rydal Meadowbrook Civic Association

4.4 Relevant Themes from Stakeholder Interviews

In general, the concept of a TRID was very well received, particularly by business owners in the area. One benefit from conducting multiple interviews was identifying recurring themes across stakeholder groups. These are summarized below:

 Importantly, most stakeholders were not repelled by increased density and in fact saw it as a desirable aim for this area.

 Some concerns were expressed about increased traffic, with the thought that TRID funds could be used in part to alleviate traffic congestion and improve safety for both vehicles and non-motorized roadway users.

 Making the area more walkable and bikeable, particularly through the addition of a promenade along the frontage of retail sites, would attract more foot traffic and therefore benefit local merchants.

 The existence of a number of properties under long-term leases provoked the opinion that in the short run redevelopment opportunities may be constrained.

 Additional traffic may make crossings on the Fairway more problematic for residents of Rydal East and West walking to and from the Baederwood Shopping Center, so some TRID funds should be spent to improve crossing locations.

 Some of the best parcels for development and redevelopment are on the north side of The Fairway near Old York Road, particularly if an access road between Old York Road and The Fairway were installed.

5.0 MARKET ASSESSMENT

5.1 Overview

The purpose of this section is to synthesize past and present assessments of the market potential for various developments and improvements, to the end of generating a framework for recommending specific developments and improvements within the TRID construct. As noted above, the developments and improvements advanced in this planning report for the TRID represent the accumulation of recommendations from past reports.6

5.2 TRID Area

In general, properties to be included in the TRID must be located within a ½-mile of the transit stop that the TRID is centered on. For the proposed Noble TRID, this radius circumscribes an important commercial hub within the Township, which is located to the north and northeast of the Noble Station up Old York Road and across The Fairway (see Figure 5.1). Indeed, an important aim of the Noble TRID is to strengthen and densify this commercial hub. Conversely, the area to the south of the Noble Station is largely residential.

6 See Appendix F for a full list of recommendations advanced in past planning studies.

Figure 5.1 – A Half-Mile Radius from the Noble Station in Abington Township

Source: CHPlanning (2013)

5.3 Population and Demographics

The population of the Township peaked in the 1970 census at 63,625 residents. Since then, the population has declined to a current total of 55,310 in the 2010 census. There are 21,382 households with an average household size of 2.55.

Based on data from the 2010 census, the racial breakdown in the Township is 79.7 percent Caucasian (white), 12.4 percent black or African-American, 4.9 percent Asian- American, 2.1 percent of two or more races, and 0.1 percent Native American. About 3 percent of the population is of Latino or Hispanic ancestry.

The Township is a relatively affluent area with high average income levels when compared to Commonwealth averages. Average household income for the Township is $101,701 (vs. $69,282 for the Commonwealth), making this area a very attractive location for businesses and developers.

5.4 Employment

Township residents can easily access several major employers. Abington Memorial Hospital is by far the largest, with over 4,000 employees (see Table 5.1). Furthermore, good transit access, through the Noble Station as well as the SEPTA Route 55 bus, enables easy connectivity to other regional employment centers.

Table 5.1 – Major Employers in Abington Township

Employer # of Employees Abington Memorial Hospital 4,195 Holy Redeemer Health System 2,071 Willow Grove Park Mall 1,637 SPS Technologies 1,140 Abington School District 1,131 Macy's, Inc. 746 Penn State Abington 638 Abington Township 623 Target 323 Giant 293 Source: US Census Bureau (2010)

5.5 Transportation

Commuting in the Township mirrors the statewide averages, despite the extensive existing transit resources (see Table 5.2). This suggests that enhancement of the transit experience, through TODs and pedestrian-friendly amenities, may engender growth in transit usage and in multi-modal trips.

Table 5.2 – Commuter Mode Split in Abington Township

Abington Township Commonwealth of Pennsylvania

Drove Alone 77.4% 76.5% Carpooled 8.6% 10.4% Public transportation 6.6% 5.2% Walked 3.4% 4.1% Worked from Home 3.4% 3.0% Other 0.6% 0.8% Source: US Census Bureau (2010)

This area is well-served by transit, and in particular SEPTA’s Regional Rail and Route 55 bus. The Noble Station is located along the West Trenton Regional Rail Line, formerly known as the R3 Line. Headways are about 20-30 minutes during peak hours and 60 minutes during off-peak hours and on the weekends. The SEPTA Route 55 bus line runs up and down Old York Road and has a very high level of service, with headways of 10-15 minutes during peak hours of service and 15-35 minutes during off-peak hours (as well as after-midnight service).

In order to help maximize transit use, it is important to develop pedestrian and bicycle routes that are safe, efficient, attractive, and inviting. Pedestrian access to the Noble Station is currently marginal at best, with direct access via large stairways or through parking lots and virtually no convenient wheelchair access. The Fairway does have pedestrian-scale lighting and generally adequate sidewalk width (around five feet, not including the roadway buffer zone), but the wide traffic lanes can induce high vehicle speeds. In addition, crossings are limited, with the only ones located at the signal at Old York Road, the unsignalized intersection at Rydal Road, and two unsignalized mid-block locations between the Baederwood Shopping Center and Rydal East/West. Old York Road near the study area also has pedestrian scale lighting and a roadway buffer, but limited sidewalk width (four feet) and high vehicular volumes discourage pedestrian use. No dedicated bicycle lanes or other facilities are located on any roadways in the area.

Vehicular access to The Fairway and the businesses and other establishments along the roadway is limited. The only direct access points to The Fairway are the signalized intersection at Old York Road and the unsignalized intersection at Rydal Road. The signalized intersection currently operates at a borderline acceptable condition during peak hours, and the unsignalized intersection experiences high delays at the stop- controlled approach. Without additional roadway connections, operations at these intersections will continue to deteriorate as traffic increases due to the expected development and redevelopment in the area. Additional connections from The Fairway to Old York Road and Susquehanna Road will help to divert traffic and take some of the pressure off of these congested locations.

5.6 The Role of a TRID in Activating a Development Area

The intention behind TRIDs is for developments and improvements to be envisioned together: developments generate incremental tax revenues to help pay for improvements, and improvements in turn make areas more attractive for development. These linkages are an important part of pivoting from an assessment of an area’s physical conditions and market characteristics to a recommendation on the developments and improvements that should go there: developments should make sense given the market assessment of the area, and improvements should provide the necessary accommodation and enhancement to encourage those developments.

5.7 Market Assessment of Development Opportunities

The market assessment performed as part of the previous study in 2007 was utilized to assess what types of developments might be appropriate for the area. While market trends changed dramatically in the years thereafter due to the recent economic recession, the housing market has stabilized and the economy is again in a growth mode, so the analysis was considered valid, since little new development has occurred and therefore the same opportunities are present and thus inform the development recommendations that follow in this planning report. Four categories were explored in detail: (1) housing, (2) retail, (3) hotel, and (4) office.

Housing

The housing assessment indicated that, considering county-wide growth, some new housing could be accommodated, most likely higher-end multi-family housing, such as apartment and condominiums. Penn State Abington has indicated that new apartment and condominium housing could be beneficial in helping them meet student housing demand. Younger single professionals that work at Abington Hospital may also represent a market. Finally, empty nesters that are looking to downsize could provide yet another source of demand for this type of housing, particularly considering the proximity of Rydal Park, Rydal East, and Rydal West which currently house the growing number of elderly residents in the Township.

Retail

The capture rates for many types of goods are low in the market area, indicating a need for certain types of retail. Capture rates below 100 percent indicate that the types of goods in question are not met by the current retail mix, forcing shoppers in the area to travel outside the area to meet their needs. This is not hard to do, given the availability of multiple options nearby, and represents a market “leakage” and thus a loss for the Township. In this area, these goods include shopper’s goods, which have a capture rate of 69 percent, and eating and drinking places, which have a capture rate of 43 percent. These findings were validated by focus group discussions that were conducted, in which residents indicated a desire for these types of stores, particularly smaller, boutique storefronts, such as what can be found in nearby downtown Jenkintown.

Hotel

The market assessment showed a high occupancy rate for hotels, indicating that another hotel could likely be absorbed by the market. The type of hotel that was determined to be most appropriate was an economy hotel, as this sector was somewhat underserved, with only 25 percent of the existing hotel supply in the economy classification.

Office

The previous study indicated little immediate demand for additional office space. Several office buildings have been added, and local developers have indicated existing office vacancies in many of their properties. It is possible, however, that over time, additional development of other uses will lead to a filling of existing office space and then a demand for additional office space.

5.8 Market Assessment of Improvement Concepts

In order to accommodate new development, many transportation-related improvements are needed. Improvements to the area roadways are required to both accommodate the additional vehicular traffic and help encourage a pedestrian-friendly, human-scale environment. Other types of improvements that should be advanced include public amenities, such as parks, that would encourage street-level activity and lend themselves to accommodating public events, such as farmers markets and parades.

Many improvement options have been assembled from previous reports and have been vetted through the public process. This planning report seeks to build upon and refine these options, coordinating them with the development concepts that are also advanced in this planning report.

Vehicular Transportation

Many transportation improvements were identified in the Abington Noble TOD Plan that would be needed to accommodate the vehicular traffic that would result from the proposed TOD adjacent to the Noble Station. These improvements were combined with improvements from other previous studies as well as some improvements suggested by area stakeholders.

One of the key challenges to this area is the limited number of ways to access The Fairway, as the current configuration funnels all traffic along a small number of roads (see Figure 5.2). Many previous studies have recommended a network of roads to help disperse traffic more logically through the study area, providing more options for vehicles to get to and around the site (see Figure 5.3). This would result in greatly improved traffic flow (see Figure 5.4). All of these internal circulation roadways would have the same design characteristics as the new streets, as described in the Abington Noble Transit Oriented Development Plan: low speeds, 12’ lanes, and on-street parking where feasible.

Figure 5.2 – Current Traffic Flow near the Noble Station in Abington Township

Source: CHPlanning (2013)

Figure 5.3 – Recommended Traffic Flow Enhancements near the Noble Station in Abington Township

Source: CHPlanning (2013)

Figure 5.4 – Future Traffic Flow near the Noble Station in Abington Township, Net of the Implementation of Recommended Traffic Flow Enhancements

Source: CHPlanning (2013)

Bicycle and Pedestrian Mobility

This finer grain roadway network would create smaller, more human-scale blocks with additional signalized intersections and crossing options. It creates a network, enhancing connectivity, bringing together the individual, disparate developments into a cohesive neighborhood, giving the area a more logical form.

Increasing bicycle mobility in the study area should also be a goal, since this would allow many transit riders and residents another transportation option. Cycling is an increasingly popular form of transportation for populations that are expected to increase in the area, particularly students and the elderly.

In addition to allowing transportation within the study area, safe and efficient pedestrian and bicycle access to get to the study area is also deemed critical. If visitors can comfortably and safely walk or bike to get to the area, as well as circulate around the site, it is likely that more will choose these non-motorized transportation options, reducing the vehicular burden on roadways.

Transit Access

The entire concept of a TRID is, of course, predicated on capturing the value added by a transit station, so enhancing access to the transit station should be a priority. For example, the only way to cross the Regional Rail tracks currently is to use the bridge across Old York Road, which is very difficult due to severe grades. The station also lacks efficient wheelchair access to the south side of the station. In general, non-motorized access to and from Noble Station is logistically difficult and aesthetically unappealing.

Public Spaces

Public spaces help bring streets to life and provide an amenity for residents and visitors alike. Public spaces can consist of recreational areas, such as parks, or street side areas used as outdoor cafés. Larger areas can also host community events or even smaller, regular events, like farmers markets.

Stormwater Management

Many conceptual ways to address stormwater are discussed in the Abington Noble TOD Study, including rainwater planters and tree pits. The County has also explored ways to incorporate rain gardens into urban designs. Many of these concepts were proposed as part of curb extensions and in sidewalk buffer areas along sidewalks. While they will not be individually priced out as part of this report, they should be considered in areas where a great deal of new impervious surfaces are created, or in areas where flooding is an issue.

6.0 INVESTMENT PHASING and IMPROVEMENT OPTIONS

6.1 Overview

The purpose of this section is to propose TRID boundaries and to advance a recommended schedule of developments and improvements that should take place within those boundaries. Attention is given to the phasing of these implementations and to the extent that they complement and support one another. Cost estimates are also provided, en route to matching them against revenue estimates associated with the value capture potential of the TRID area.

6.2 Proposed TRID Boundaries

As noted above, TRID boundaries can extend up to a ½-mile from the transit station that they are centered on. The aims of the Noble TRID lend themselves to a focus on the area to the north and northeast of the Noble Station, because that is the area where additional density makes sense and where additional infrastructure investment can help catalyze that additional density. Thus, the proposed boundaries for the Noble TRID include parcels that are largely to the north and northeast of the Noble Station, extending from both sides of Old York Road on one side to both sides of The Fairway on the other side (see Figure 6.1).

On-site property assessments, analysis of existing uses, and stakeholder interviews were conducted in order to determine what properties have the greatest potential to be developed or redeveloped. While some of these sites are not expected to be developed or redeveloped in the near future, all are in close proximity to the Noble Station and to the TOD site and have potential for redevelopment (e.g. parcels with large expanses of surface parking).

Note that the Rydal Park site is a special case. Despite the fact that it has virtually no potential for redevelopment and it is not being recommended for redevelopment, it was included to allow the TRID boundaries to extend to include the intersections of The Fairway & Rydal Road and Susquehanna Road & Rydal/Valley Road. These intersections are seen as critical candidates for improvement, as they represent the major gateway to the TRID study area from the east.

The parcel in the north-central area that is not included in the TRID is a synagogue and, as such, was not considered a candidate for redevelopment. The few parcels south and southwest of the Noble Station that were included in the TRID were designated as such in order to address the intersection of Old York Road and the SEPTA train tracks in a unified manner.

Figure 6.1 – Proposed TRID Boundaries (White Lines Represent Individual Parcel Boundaries)

Source: CHPlanning (2013)

6.3 Overview of Proposed Phasing

As noted above, on-site property assessments, analysis of existing uses, and stakeholder interviews were conducted in order to determine what properties have the greatest potential to be developed or redeveloped. Then, the study area was divided up into 13 contiguous sections (see Figure 6.1). A variety of data was collected for each parcel to determine development potential and future tax revenue. These included density, leasable square footage, assessed value (total), and normalized assessment (price per square foot).7 The available data, supplemented with stakeholder interviews and other information, helped form a coherent and comprehensive picture of the study area.

Input utilized from the stakeholders included information on properties that had been recently improvement or that had long term leases and are unlikely to be redeveloped in the near future. Therefore, none of these parcels were contemplated for the earlier years of the TRID.

The proposed phasing of the developments involves four distinct time periods in which development will take place (see Table 6.1 and Figure 6.2). Developments and improvements for each phase are contemplated in the remainder of this section.

7 See Appendix G for additional detail on the current characteristics of parcels located within the proposed TRID boundaries.

Table 6.1 – Phasing of Developments and Improvements within the Proposed TRID Boundaries

Phase Developments Improvements 1a (Yrs 0-2) Super Wawa, Bank, Toni Roni’s Street A 1b (Yrs 3-5) TOD site, retail/residential, recreational Fairway / Rydal space, age-restricted residential Rydal / Susquehanna Fairway / Old York Fairway restriping Fairway ped crossings Ped bridge over SEPTA tracks Old York / Baeder bus stop Old York street trees Park south of train tracks 2 (Yrs 6-10) North side of The Fairway Streets B, C, D 3 (Yrs 11-20) West side of Old York Road, south side of New signal and intersection realignment at The Fairway Old York / B New signal at Fairway / C Fairway widening/restriping Baederwood pedestrian promenade Old York / B and Old York / Fairway bus stops Baeder Road street trees Source: CHPlanning (2013)

6.4 Overview of Development Phasing

The centerpiece of the Noble TRID is the TOD site advanced in the 2012 Noble Abington Transit-Oriented Development Plan. However, that site is likely not going to advance for at least another couple of years. Therefore, that site is slotted in Phase 1b, and a Phase 1a is contemplated that initiates the TRID and lays the groundwork for subsequent development opportunities and improvement investments. Sites in Phase 1a are underway, meaning that the TRID could immediately see incremental tax revenues that can be bonded to generate funds for high priority improvements. Sites in Phase 1b and 2 are estimated to follow from there, and Phase 3 sites are those which are less available for development in the short- and medium-term but that still represent high-potential locations for long-term densification (see Table 6.2, Figure 6.2, and Figure 6.3).

It is not clear how much development will take place, or when it will occur. Beyond the development in Phase 1a, any estimated activity is largely speculative. However, using a combination of the work and research done through past studies of the Abington area, sentiments on development gathered through stakeholder interviews, and the application of various industry averages, estimates of future development can be developed. An original financial analysis was conducted for this report, for which estimates on the use and value of the TOD Site in Phase 1b were informed by the 2012 Noble Abington Transit-Oriented Development Plan. For other developments, past studies and stakeholder interviews were used to estimate the type and quantity of development that the TRID area could sustain, as well as the timing of that development. Various construction and commercial industry averages were then employed to generate a reasonable and conservative estimate for the value of this projected development.

Table 6.2 – Phasing of Developments within the Proposed TRID Boundaries

Development # Phase Description of Use(s) 72-unit Residential Apartments, 500-space Parking TOD Site 1 1b Garage, 12,000 square feet -- Retail Spruced up Retail 2 3 5,000 square feet -- Boutique/”Main-Street” Retail Wawa and Bank 3 1a Wawa with Gas Station, Commercial Bank Old York Road Corridor North 4 3 15,000 square feet -- Mixed-Use Retail/Office 30,000 square feet -- Mixed-Use Retail/Office, Auto Dealer Row 5 3 Higher Density Development 4,000 square feet -- Boutique/”Main-Street”-oriented Main Street Boutique 6 2 Retail/Restaurant Retail 8,000 square feet -- Boutique/”Main-Street” Retail, General Mixed Use Space 7 2 2nd Floor Office Penn State Arts Center 8 1b Penn State Arts Building (Tax Exempt) Trader Joe's/Raymore & Flannigan 9 3 30,000 square feet -- Retail, Higher Density 30,000 -- square feet Boutique/”Main-Street”- Baederwood-Noble Corridor 10 3 oriented Retail/Restaurant Retail Rydal Park Senior Community 11 N/A (no development or change in use) Old York Road Corridor South 12 3 3,500 square feet -- Mixed-Use Retail Old York Road Corridor South 12 1a Toni-Roni’s Restaurant Proposed Residential Development 13 1b 92-unit Twin-Home Residential Community Source: CHPlanning (2013), Econsult Solutions, Inc. (2013)

Figure 6.2 – Proposed TRID Boundaries, with Sub-Areas Numbered for the Sake of Reference

Source: CHPlanning (2013)

Figure 6.3 – Phasing of Developments within the Proposed TRID Boundaries

Source: CHPlanning (2013)

6.5 Phase 1a Development

Phase 1a includes the developments that are already planned or approved for and are expected to be constructed within the next 1-2 years. While these developments are not technically induced by the TRID, they will benefit from many of the TRID improvements and therefore were included in the value- capture aspect of the TRID as a way to initiate a virtuous cycle of new developments providing funds for new improvements which then make subsequent developments more feasible.

These developments consist of the proposed “Super Wawa” and Bank on the west side of Old York Road just north of Baeder Road (shown in the attached figure) and the Toni Roni’s restaurant on the southwest corner of Old York Road & Rodman Road that would replace the existing Wawa.

6.6 Phase 1b Development

These developments are those that have the potential to develop in the near future, likely in the next 3-5 years but not imminently. Chief among these is the proposed mixed-use parking garage/residential building that was the subject of the 2012 Noble Abington Transit-Oriented Development Plan. This is the true TOD site of the Noble TRID, and represents the centerpiece of the entire plan (see Figure 6.4 and Figure 6.5). Nevertheless, because it is seen as at least a couple of years away, it is included in Phase 1b, with the imminent developments in Phase 1a being used to catalyze the TRID into existence and to generate the first round of funding to support the improvements being contemplated for the TRID.

Figure 6.4 – Current Image of TOD Site

Source: CHPlanning (2013)

Figure 6.5 – Conceptual Rendering of TOD Site

Source: CHPlanning (2013)

Two other nearby developments that were examined in this phase are located on the existing SEPTA parking lots and are dependent on construction of the mixed-use garage to replace the lost parking spaces. One is a mixed-use retail and residential development on the existing SEPTA lot north of the railroad tracks and the other is a passive recreational space and playground on the south side of the railroad tracks. Preliminary discussions with SEPTA revealed that they would be open to selling or subdividing some of their existing parking lots to developers as long as the lost parking would be replaced nearby. In this case, some of the parking in the proposed mixed-use garage would be dedicated to SEPTA patrons to replace the current surface lots.

Preliminary architectural designs for station upgrades at this location have been developed by SEPTA, although funding for the station improvements are not presently available. While funds could be made available in the future, there is no guarantee that capital improvements at this station would occur at any point in the near future. SEPTA did indicate that they would be amenable to potentially selling their entire property on the north side of the railroad tracks to a developer provided that the developer would provide appropriate transit amenities exclusively for SEPTA patrons and use SEPTA design standards. This arrangement could be a mutually beneficial situation, as it would provide additional space for a developer and upgrade the station area for SEPTA.

The other anticipated developments in this phase are an age-restricted residential development that would be connected to the Rydal Park retirement community and a proposed Penn State Abington building just east of Old York Road. The site for the proposed retirement community has been purchased by Rydal Park and had been previously approved for a residential development that was abandoned at the onset of the housing market crash in 2008. The site on Old York Road that is being considered by Penn State Abington would be an arts center and give the university visibility along Old York Road.

6.7 Phase 2 Development

Developments in this phase include parcels that are in close proximity to the transit station that could be redeveloped, although no plans have yet been proposed. These areas do have development potential and this potential could be increased with appropriate public improvements. Developments on these parcels would be expected to occur after the mixed-use garage and associated developments, likely within the next 6- 10 years.

The sites on the north side of The Fairway near Old York Road could be developed as mixed-use developments with ground level retail facing The Fairway, creating a street wall and forming the beginnings of a Main Street. These areas could feature the smaller boutique shops that are desired by the community and could be absorbed by the market. The upper floors could be condo-style housing for the smaller parcels and the large

Econsult Solutions | 1435 Walnut Street, Ste. 300 | Philadelphia, PA 19102 | 215-717-2777 | econsultsolutions.com TRANSIT REVITALIZATION INVESTMENT DISTRICT (TRID) PLANNING REPORT FOR NOBLE STATION IN ABINGTON TOWNSHIP 40 parcel could accommodate a hotel. The current market conditions combined with the presence of nearby Abington Hospital and the growth of Penn State Abington University would likely be able to support this type of development.

South of The Fairway, stakeholder interviews revealed that most of the properties had long-term leases, underwent recent improvements, or had owners that did not have plans to redevelop at any point in the foreseeable future. However, air rights over some of these structures could be available and might provide opportunities to increase density through increased height. This type of redevelopment, or added development, would not violate lease agreements and still provide the increased density and property value near the transit station.

6.8 Phase 3 Development

These areas represent areas that have been recently improved, have long-term leases, or are otherwise not available for redevelopment in the near future. They were included in the TRID boundary because they are in close proximity to the transit station and would be good candidates for redevelopment in the event that conditions change, but no development is contemplated for these areas for at least the next 10 years. Hence, they are slotted as taking place in 11-20 years.

6.9 Overview of Improvement Phasing

Improvements being advanced represent the intersection of two sources. First, they include those proposed in previous studies, as solicited from those respective public engagement processes. Second, they include those that address existing obstacles to development at key development sites, which once addressed will pave the way for development to follow. Improvements include the introduction of new roads, pedestrian amenities, and intersection improvements (see Figure 6.6, Figure 6.7, Figure 6.8, Figure 6.9, Figure 6.10, and Figure 6.11).8

8 Note that these improvements are planning-level only, detailed engineering-level drawings were not performed. In addition to the proposed transportation improvements, any new developments would still be required to perform a Traffic Impact Study (TIS) in order to develop more specific solutions.

Figure 6.6 – Proposed Improvements for Phase 1a/1b of the Noble TRID

Source: CHPlanning (2013)

Figure 6.7 – Proposed Improvements for Phase 1a/1b of the Noble TRID

Source: CHPlanning (2013)

Figure 6.8 – Proposed Improvements for Phase 1a/1b of the Noble TRID

Source: CHPlanning (2013)

Figure 6.9 – Proposed Improvements for Phase 2/3 of the Noble TRID

Source: CHPlanning (2013)

Figure 6.10 – Proposed Improvements for Phase 2/3 of the Noble TRID

Source: CHPlanning (2013)

Figure 6.11 – Proposed Improvements for Phase 2/3 of the Noble TRID9

Source: CHPlanning (2013)

9 The traffic light recommendations on The Fairway are being suggested at this time, but any actual installations will need to meet specific PennDOT traffic warrants prior to any approval.

6.10 Phase 1a/1b Improvements

Many of the improvements in Phase 1 were recommendations from the Abington Noble TOD Study, since the mixed-use garage has the potential to be an early development in the area. All of these options are described in more detail in this previous study. All improvements, both from this report and beyond are described below:

Street A (from the Abington Noble Transit-Oriented Development Plan)

This roadway was proposed in order to provide access to the proposed mixed-use garage and connect Old York Road to The Fairway. This is a modification of an original plan that would have extended Baeder Road. The tree-lined roadway would have two 12’ lanes, one in each direction, a low design speed, generous sidewalks along both sides of the road, and some on-street parking. More specific designs for this road are discussed in the Abington Noble Transit-Oriented Development Plan. This road is one of the most important improvements as it provides access to the TOD site. It also adds a pedestrian connection, creates smaller human-scale blocks, and helps to disperse traffic.

Intersection of The Fairway and Rydal Road (from the Abington Noble Transit-Oriented Development Plan)

These improvements consisted of re-aligning and signalizing the intersection, greatly reducing delay on the eastbound left-turn approach and bringing the level of service (LOS) from LOS F to a LOS B.

This re-alignment option is a very expensive improvement option and might not be feasible in Phase 1. Judging by the traffic volumes at this intersection, a less expensive interim measure could be installation of a temporary signal at the intersection without the reconfiguration, leaving the westbound right-turn lane as a free move. This improvement would help traffic conditions until funds became available to fully implement the intersection re-alignment. The temporary signal should include a pedestrian phase and a high-visibility crosswalk should be added to the intersection.

Intersection of Rydal Road and Susquehanna Road (from the Abington Noble Transit- Oriented Development Plan)

These improvements consist of resurfacing and re-striping Rydal Road and Valley Road to add a lane and re-timing the signal.

Intersection of The Fairway and Old York Road (from the Abington Noble Transit- Oriented Development Plan)

These improvements consist of installation of a bump-out on the northeast corner of the intersection to reduce crossings distances and new countdown pedestrian signal heads.

Restriping The Fairway (from the Abington Noble Transit-Oriented Development Plan)

This improvement option would restripe The Fairway to crate narrower vehicular travel lanes and dedicated 5’ wide bike lanes. This would formalize the single travel lanes and provide space specifically dedicated to cyclists.

Improve Pedestrian Crossings on The Fairway near Rydal West and Rydal East (Suggestion from Stakeholders)

Currently, there are two crossings that connect the Baederwood Shopping Center and the residential units at Rydal East/West. The crossings consist of marked crosswalks with advanced warning flashers that operate during certain times of the day. Interviews with the management of Rydal East/West indicated that many of their residents are elderly and with increased traffic, upgrading these crossings should be considered.

One very effective and relatively inexpensive way to improve these crossings would be to replace the existing pre-timed flashers with pedestrian actuated Rectangular Rapid Flashing Beacons (RRFB). These devices increase yielding behavior and, because they are only activated during pedestrian crossings, provide better information to drivers. This allows them to maintain their effectiveness over time unlike some other devices that tend to become less effective as time passes, such as signage along.

Pedestrian Bridge over SEPTA tracks (adopted from the Abington Noble Transit-Oriented Development Plan)

While the TRID is not anticipated to fund the entire cost for the pedestrian bridge that would extend over the SEPTA tracks, some funds from the TRID can be used in conjunction with funding from the developer of the mixed-use garage and possibly SEPTA. It would provide a high-quality, ADA compliant connection between parking in the garage to the south (outbound) side of the tracks. This structure would be a much more convenient, comfortable, and direct crossing option than the current connection via Old York Road.

Improve Bus Stop at Old York Road and Baeder Road (Suggestion from SEPTA)

Some of the TRID funds, possibly combined with capital improvement dollars from SEPTA, could be used to improve the bus stop at Old York Road and Baeder Road by adding a shelter, bench, and trash receptacle. It would increase the visibility of the 55 bus

line and help encourage trip-linking for riders already using SEPTA’s rail system. This bus line has a high quality of service with short headways, about 10-15 minutes during peak service times, just over 30 minutes off peak, and 15-20 minutes on weekends. Often, simply informing riders of this could increase usage, particularly for those traveling to the Abington Hospital, Penn State Abington, the Willow Grove Mall, and other locations along Old York Road.

Street Trees along Old York Road between Baeder Road and The Fairway

Street trees are an important amenity as they add shade for pedestrians, provide a buffer between the pedestrian way and vehicles, and generally help improve the appearance of roadways. These street trees would match the planned installation of street trees on the other side of the road in front of the planned Wawa and bank, transforming this section of Old York Road to a tree-lined arterial.

Street Trees along Old York Road

Street trees along this section of road would complement the proposed Penn State development.

Park on South Side of SEPTA tracks (from the Abington Noble Transit-Oriented Development Plan)

This park would replace the existing SEPTA parking (which would be moved to the mixed-use garage) and include passive recreational space and a playground. It could also be used as a public gathering place and host community events, farmers markets, etc.

6.11 Phase 2/3 Improvements

Streets B, C, and D (Adopted from Recommendations from the Old York Road Study and through Recommendations from Stakeholders)

These new roads would create a network in the western part of the study area north of The Fairway and provide more options for vehicles to get into the study area, dispersing

Econsult Solutions | 1435 Walnut Street, Ste. 300 | Philadelphia, PA 19102 | 215-717-2777 | econsultsolutions.com TRANSIT REVITALIZATION INVESTMENT DISTRICT (TRID) PLANNING REPORT FOR NOBLE STATION IN ABINGTON TOWNSHIP 50 traffic and reducing the burden on the existing signals. They would be designed to the same standards as Street A from the Phase 1 improvements, providing pedestrian connections and crossing options at the proposed intersections.

Street D would connect to the street network that would be part of a potential residential development that would, in turn, extend to Susquehanna Road. This would provide a connection between Old York Road and Susquehanna Road and could help to relieve pressure on that heavily congested area.

New Signal and Intersection Re-Alignment at Old York Road & Street B & New Signal at The Fairway& Street C (To be Installed in Conjunction with Streets B, C, and D)

The new signal at Street A along Old York Road would require close coordination with PennDOT, as it would be very close to the existing signal at Old York Road & The Fairway. Re-aligning this intersection slightly and moving it north would result in signal spacing of about 380’-400.’ While this is very close spacing for a major arterial, it is comparable to other signal spacing along the road. The spacing between Baeder Road and Rodman Avenue, for example, is also around 400.’ The signal timing would be coordinated with the signal at The Fairway in order to maintain adequate vehicular progression along Old York Road. If this spacing is deemed not to be feasible by PennDOT, another option would be to run this road on the north side of the existing shopping center by extending and widening Hidden Lane, although this would increase the length and cost of the roadway.

Widen and Restripe to Provide On-Street Parking along The Fairway between Street A/B and Street C

The existing lane widths along The Fairway are 22’, which are proposed to be restriped in Phase 1. Widening the roadway by approximately two feet to 24’on the north side of the road would allow 8’ wide on-street parallel parking, 5’ bike lanes, and still maintain 11’ travel lanes. This would provide approximately 25-30 additional parking spaces for the proposed ground-level retail between Street A/B and Street C.

On-street parking provides a buffer between sidewalks and vehicular traffic and would help to reduce the need for additional off-street parking spaces, leaving more developable land.

Pedestrian Promenade along Baederwood Shopping Center

The Baederwood Shopping Center recently underwent a multi-million dollar façade improvement, so it is not likely to re-developed in the near future. However, it would be possible to connect this retail asset to the street through a promenade to allow more direct access for pedestrians and bicycles traveling along The Fairway.

Improve Bus Stop at Old York Road and Street B and at Old York Road and The Fairway

The proposed signal at Old York Road and Street A gives pedestrians the ability to cross Old York Road, making this an ideal location for a formalized bus stop. Similarly, the pedestrian crossing improvements at Old York Road and The Fairway from Phase 1 enhance the convenience and safety for transit riders at this intersection. Amenities could include a shelter, bench, and trash receptacle.

Install Street Trees along Baeder Road between The Fairway and the Old York Road split

These street trees would be placed along the remainder of Old York Road in the study area north of Baeder Road.

6.12 Cost Estimates for Improvements

These recommended improvements were prioritized based on need, both in relation to the goals of the TRID and as reflected by past and present stakeholder feedback. Then, cost estimates were developed (see Table 6.3 and Table 6.4).

Table 6.3 – Cost Estimates for Phase 1a/1b Improvements (Priority I Improvements Underlined)

Low-Cost Regular Improvement Priority Notes Option Option From Abington Street A $2,391,270 $2,391,270 I Noble TOD Study The Fairway & Rydal Road - From Abington $105,510 $864,460 I realignment Noble TOD Study From Abington Rydal Road & Susquehanna $183,150 $183,150 I Noble TOD Study From Abington The Fairway and Old York Road $47,190 $47,190 II Noble TOD Study From Abington Re-striping The Fairway $13,200 $13,200 II Noble TOD Study TRID contribution Pedestrian Bridge $150,000 $350,000 I only Pedestrian Crossing Improvement $79,280 $79,280 III on The Fairway Could be funded by Bus Stop Improvements $10,760 $10,760 III SEPTA or ads Street Trees $85,140 $85,140 III Recreational Park $585,220 $585,220 III Total $3,650,720 $4,609,670

Source: CHPlanning (2013)

Table 6.4 – Cost Estimates for Phase 2/3 Improvements (Priority I Improvements Underlined)

Improvement Cost Priority Notes Street B $1,610,510 I Costs include new signal Street C $2,015,260 I Costs include new signal Street D $1,326,670 II Street B and Old York Road Realignment $274,720 I Not including signal On-Street Parking on The Fairway $161,940 II Pedestrian Promenade $384,670 III Improve Bus Stops (2) $21,520 III Street Trees $144,540 III Total $5,939,830

Source: CHPlanning (2013)

Whether and in what order improvements are undertaken should be dictated by a combination of four factors:

1. What advances the TRID’s overall aims;

2. What catalyzes the developments anticipated for within the TRID;

3. What satisfies the immediate users of the area (i.e. residents and merchants), and;

4. What the TRID and the Township can afford to undertake.

With additional stakeholder engagement and as specific improvement opportunities take shape, this may shift the order or prioritization of these improvements. Nevertheless, at this juncture it is possible to classify improvements in terms of their importance to the TRID and therefore recommend that these specific improvements be undertaken first. Meanwhile, others can be undertaken as funds become available, through a pay-as-you- go program. This approach helps to reduce the debt exposure of the TRID entity.

Note that these costs do not include Right-of-Way (ROW) costs as it is assumed that land will be dedicated by the developers to the Township to allow for the proposed improvements as a condition of development. One exception might be Street A, as this is being constructed on property that is not undergoing re-development. Cost for land in the area is roughly $1.2 million per acre and the amount of land being taken by Street A is

Econsult Solutions | 1435 Walnut Street, Ste. 300 | Philadelphia, PA 19102 | 215-717-2777 | econsultsolutions.com TRANSIT REVITALIZATION INVESTMENT DISTRICT (TRID) PLANNING REPORT FOR NOBLE STATION IN ABINGTON TOWNSHIP 54 approximately 0.9 acres. If this land is not dedicated to the Township by the property owners, it would increase costs of Street A by about $1.08 million.

6.13 Synchronizing Developments and Improvements

The interplay between developments and improvements within TRIDs is particularly elegant, important, and complex:

1. Developments must make market sense to proceed, and TRIDs provide legitimacy, attention, and resources to help make them more attractive.

2. TRIDs also result in improvements that improve the attractiveness of particular development sites and the feasibility of particular developments.

3. Those developments, in turn, generate incremental tax revenues that can be captured and used to fund the very improvements that make them possible.

This section was concerned with what can be envisioned for the TRID in terms of developments and improvements and how those recommended developments and improvements relate across time and space. The following section is concerned with whether the recommended developments generate sufficient funds in support of the recommended improvements.

7.0 FINANCIAL ANALYSIS

7.1 Overview

The purpose of this section is to describe the approach and results of the financial analysis component of the TRID planning report effort. An overall framework and general assumptions are laid out, specific financial analysis calculations are stepped through, and their resulting estimates explained.

While at this juncture there are far too many unknowns to know these estimates at any level of precision, reasonable calculations must be performed now because two pressing questions must be answered in order for the Township and other stakeholders to determine whether and how to advance this TRID:

1. How much value capture potential is there within the TRID? This determines whether sufficient funds can be raised in support of recommended improvements.

2. Are the taxing jurisdictions better or worse off with a TRID? This involves comparing two competing scenarios. In the first, the TRID exists, and additional development happens, but incremental tax revenues are captured while the TRID is in effect. In the second, the TRID does not exist, and less additional development happens, but all tax revenues accrue to the taxing jurisdictions. Knowing which scenario generates more tax revenues is of critical importance to each of the taxing jurisdictions.

7.2 The Premise and Mechanics behind Development Incentives

Development incentives that involve the temporary or permanent forgoing of tax revenues are best when they simultaneously achieve two goals. The first is to fundamentally change the financial feasibility of a development project so that the existence of the incentive shifts the project from infeasible to feasible. The second is to do so in a way that results in greater tax revenues to the taxing jurisdictions over time, whether from immediate expansions in other tax bases or from long-term expansions in the base of the tax being forgone.

For example, property tax abatements involve the temporary forgoing of tax revenues. A Commonwealth example of property tax abatements is its Local Economic Revitalization Tax Assistance Act (LERTA) Program, which both the Township and School District have participated in. It is hoped that the following results ensue from such an incentive:

1. The abatement of property taxes is sufficient to shift a development project from not generating a sufficient return to a developer to warrant proceeding with a

development, to generating a sufficient return to a developer such that development proceeds.

2. The resulting development expands other tax bases within that taxing jurisdiction, such that the forgoing of property tax revenues is offset by the generation of other tax revenues.

3. The property tax base itself is increased, and after the abatement period expires the taxing jurisdiction does in fact collect the higher property tax amount.

In fact, if a development project passes what is often described as the “but for” test – i.e. the development would not have proceeded but for the existence of the tax incentive – then any foregone tax revenues do not need to be considered truly foregone, since they would not have been generated except for the fact that the tax incentive made the development possible. This is an important point that is further elaborated throughout this section.

7.3 The Mechanics of Tax Increment Financing and Their Application within TRIDs

Tax increment financing (TIF) is an elegant way to focus new property tax revenues for use in the area in which they are being generated. Also known as value capture, TIF designates a base level of property tax generation within a specific district, and any new amounts generated within that area are captured for that district. Since property taxes are required to be paid by law, they represent a cash flow stream that can be bonded, and so a bond can be floated and the future stream of payments represented by the new property taxes can be used to pay for the interest and principal for that bond. The funds generated by that bond, in turn, can be used to invest in infrastructure and improvements that help make possible the new development(s) and therefore the new property taxes that pay off that bond.

As noted above, TRIDs can be considered TIFs that are designed to make TODs possible. In a TRID, an area around a transit stop is designated as the value capture district, and all new property tax revenues generated within that district are captured and bonded. The bond, in turn, pays for the improvements within that district that are deemed necessary to make possible the new development(s) conceived for the district.

7.4 Financial Analysis Approach and Assumptions

Because of the importance of the interplay between developments and improvements as it relates to TRIDs, it is vital to know how much value capture potential a TRID has. That

Econsult Solutions | 1435 Walnut Street, Ste. 300 | Philadelphia, PA 19102 | 215-717-2777 | econsultsolutions.com TRANSIT REVITALIZATION INVESTMENT DISTRICT (TRID) PLANNING REPORT FOR NOBLE STATION IN ABINGTON TOWNSHIP 57 estimate informs whether and where improvements can be undertaken, without which developments will not likely occur and no new tax revenues will be generated to support the TRID. Also, as discussed above, the taxing jurisdictions that will be participating in a TRID, as part of their evaluation of the TRID, are interested in knowing whether they are better off financially with or without a TRID.

Therefore, significant financial analyses must be performed as part of a TRID Planning Study. While there are too many unknowns involved to know anything at any level of precision, still defensible assumptions and inputs must be used in order to arrive at credible results from which major legal, operational, and financial decisions can be made. That is the task of this section.

To complete these financial analyses, the ESI team created a value capture model, whereby assumptions regarding development potential and other variables could be translated into their effect on value capture amounts and on long-term tax revenue consequences to the taxing jurisdictions. Where possible, multiple assumptions were tested to better understand the sensitivity of the ensuing results to different inputs.

A number of assumptions and calculations went into this value capture model. They are described in sequence below.

Converting Potential Developments into Their Commensurate Increase in Property Tax Base

The developments recommended in Section 6 had to be translated into their effect on the property tax base within the TRID. There are two elements to this translation: what will be the new assessed value of each developed parcel, and when will that increase take place?

As to the first element, new assessed values are completely unknown until properties are actually assessed, even if the characteristics of the property are completely known. Thus, estimating new assessed values absent specific property characteristics is even more difficult to do to any level of precision. Nevertheless, the ESI team could and did draw from estimates performed from previous studies on the area. It also looked heavily at comparable properties in the immediate area and made an assumption that, on a per square foot or per unit basis, similar properties would have similar assessed value levels. Again, this assumption is often incorrect when it comes to individual parcels, but in the aggregate it is a reasonable approach.

These new assessed value levels were checked by generating estimates based on a profit valuation approach. In other words, properties can be valued by determining how much revenue they will generate (which can be assumed using various industry data sets to arrive at reasonable per square foot revenue estimates), applying an industry average expense ratio, and using a capitalization rate to convert annual profits into current valuation.

As to the second element, it was assumed, for simplicity’s sake, that developments would take place in the midpoint year of each phase. Hence, Phase 1a projects (slated for Years 0-2) would occur in Year 1, Phase 1b projects (Years 3-5) in Year 4, Phase 2 projects (Years 6-10) in Year 8, and Phase 3 projects (Years 11-20) in Year 16.

Maximizing the Value Capture Time Period

The TRID legislation gives a maturity time for the TRID entity of 20 years maximum. In other words, the value capture period, where the TRID can collect the additional future taxable income, can be no longer than 20 years for areas within the TRID boundaries. Unfortunately, that would mean that, should a property be developed and built five (5) years after activation of the TRID, the additional tax revenue for the TRID would only be available for fifteen (15) years.

Since the TRID legislation is intentionally very flexible, the project team proposes a modified approach that would have the ability to maximize revenues, and therefore increase the extent of improvements that the TRID could fund. This approach entails segmenting the TRID into four, in accordance with the four phases contemplated for the TRID: 1a, 1b, 2, and 3. Then, for each segment, a different and staggered 20-year time period could be employed.

Thus, Phase 1a, as the first phase and which is intended to take place between Years 0- 2, would have a 20-year value capture period that would run from Years 1-20. However, Phase 1b, which is intended to take place between Years 3-5, would have a 20-year value capture period that would run from Years 4-23. The same approach would be used for Phases 2 and 3 (see Figure 7.1).

Figure 7.1 – Timing of Development Phases and of Value Capture Periods

0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 4

0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0

Wawa w/Gas Station, Toni Roni’s or Commercial 1a • Bank

TOD Site Development, 92-unit Residential 1b • Community

2 • “Main Street”-Oriented Retail Development

Additional Retail and Mixed-Use, Higher Density 3 • on Developed Sites (i.e. Auto Dealer Row)

Source: Econsult Solutions, Inc. (2013)

This has the effect of not “starting the clock” on the 20-year value capture period until the moment at which each phase’s development is ready to occur. This allows for the full 20 years of value capture for each phase, increasing the amounts captured for the TRiD and therefore the amounts available for improvements to the TRID area. It also minimizes the uncertainty associated with bonding against specific increases in property tax bases: several years in advance, it is far more unknown what will be developed and what new assessments will be, whereas if bonds are floated right before new investments are made, there is greater certainty as to what will actually be developed and what it will be assessed at.

Assumptions Associated with Estimating Value Capture Potential

How much in new property tax base will be generated within a TRID and when those property tax base increases will occur are two important pieces to estimating value capture potential. Several other assumptions need to be made in order to make that estimation.

Firstly and importantly, there must be some determination as to what constitutes the value capture base. This determination is important, because it represents what the taxing jurisdictions will continue to receive during the value capture period, above which amounts are captured for the TRID.

Oftentimes, the freezing of the present property tax base is taken literally, as in the amounts received by the taxing jurisdictions in Year 1 of the value capture period are taken as the amounts that will be received for the duration of the value capture period. This can be a difficult stipulation for the taxing jurisdictions, who depend on organic growth in their tax bases over time to offset organic growth on their expenditure sides. If, for example, expenditures rise by 3 percent per year due to inflation, holding revenues constant in nominal terms leads to a growing gap between revenues and expenditures.

Instead, it is proposed for the Noble TRID that the value capture base is set at the current property tax base level at the beginning, but that it grows over time at the rate of inflation. This means less for the TRID but allows the taxing jurisdictions to see organic growth in the portion of their tax bases represented by the TRID area, rather than seeing no growth and therefore a real decline in the revenue generated from those parcels.

Participation levels are another important consideration. In other words, how much will the Township, School District, and County participate in the TRID as it relates to the tax revenues due them from the TRID area? The higher the participation, the fewer tax revenues that go to the taxing jurisdictions but the more that is available to the TRID and therefore the more likely that additional development will occur within the TRID, thus increasing tax revenues to the taxing jurisdictions over time. Conversely, the lower the participation, the more tax revenues that go to the taxing jurisdictions but the fewer that is available to the TRID and therefore the less likely that additional development will occur within the TRID.

For simplicity’s sake, it is assumed that the Township and County will participate at 100 percent and the School District will participate at 50 percent. These levels have not been agreed upon or even raised with the taxing jurisdictions, and so simply represent a starting point from which initial estimates can be made to inform the choices about participation levels. In some places, these initial estimates are re-run using different participation levels, so that the sensitivity of those estimates to different participation levels can be seen.

Another important assumption is to what extent newly developed properties grow at a rate higher than inflation. It seems defensible to suggest that these newly developed properties will have a higher growth trajectory than other properties: in addition to being newly developed, they have the benefit of having newly implemented improvements and other developments nearby (thanks to the TRID), which further increases their attractiveness. To be conservative, it is assumed that this additional growth amount is 1 percent per year (hence, they would grow by 4 percent per year if inflation was 3 percent per year), and that this increase in annual appreciation does not begin until 10 years after the development is completed.

Finally, it is assumed that the borrowing and administration rate associated with the TRID is 6 percent (i.e. the amounts paid in interest and fees for the bond that is floated as part of the TRID), and that the debt service coverage is 120 percent (i.e. to provide a buffer against default, the amounts generated by the TRID must equal 120 percent of the annual bond payment).

Inflation is assumed to be 3 percent, which affects the value capture model in three ways. First, it represents the amounts property values will grow by. Second, it represents the annual increase in property tax revenues to the taxing jurisdictions, which occurs either from growth in the property tax base and/or in increase in property tax rates. Third, it sets the appreciation rate for TRID properties (as discussed above, this is 1 percent higher than inflation, or 4 percent, and it takes effect 10 years after developments are completed) and determines the real borrowing rate associated with the TRID (e.g. a 6 percent borrowing rate with 3 percent inflation means a real borrowing rate of 3 percent).10

Assumptions Associated with a “No TRID” Scenario

Given the present challenging development climate, it is reasonable to assume that the existence of the Noble TRID – with its attendant focus on the area and investment in

10 It is assumed that property tax bases grow at the rate of inflation. Such growth can come from one or both of two sources: increases in assessed value and increases in tax rates. In reality, assessed values are often slow to adjust to market value appreciation, and tax rates often difficult to increase at a rate higher than inflation. Therefore, property tax bases may increase at a rate less than inflation. This may necessitate an adjustment in what constitutes the base level above which funds are captured for the TRID

Econsult Solutions | 1435 Walnut Street, Ste. 300 | Philadelphia, PA 19102 | 215-717-2777 | econsultsolutions.com TRANSIT REVITALIZATION INVESTMENT DISTRICT (TRID) PLANNING REPORT FOR NOBLE STATION IN ABINGTON TOWNSHIP 62 necessary improvements and enhancements – will generate more development than if the TRID did not exist. It is unknown just how great this difference in. As noted above, it is assumed that the overall property tax base will grow by 3 percent per year as a matter of inflation.

An important negative difference for the TRID, as compared to the “no TRID” scenario, is the imminent development of the parcels being contemplated for Phase 1a. Since these are almost certain to advance, regardless of the TRID’s existence, they cannot be considered as being induced by the TRID. In fact, their existence means that for that part of the TRID area, the TRID will be less attractive for the taxing jurisdictions in the immediate future, as compared with a scenario in which the TRID is not pursued: if the TRID is implemented, the new property tax revenues from these parcels will be captured by the TRID, whereas if the TRID is not implemented the new property tax revenues will flow to the taxing jurisdictions. This stands in contrast with other proposed developments within the TRID. In which case if the TRID does not exist then those developments will not happen, so that any new property tax revenues from these developments that are captured by the TRID would not have flowed to the taxing jurisdictions anyway. This is an important aspect that has been accounted for in the TRID analysis.

Summary of Model Components

Now all model components have been accounted for. A reasonable estimate of the new property tax base associated with developments within the TRID can be made. And, these increases in property tax base can be brought forward to the present, in terms of the size of bond that can be floated in support of TRID expenditures. Finally, a comparison of the tax revenues generated to the taxing jurisdictions can be made between the TRID being in effect and the TRID not being pursued. The results of the analysis, accounting for all of these questions, approaches, and assumptions, are presented next.

7.5 Value Capture Potential – Increase in Assessed Value

Based on the methodological approach and relevant assumptions as described above, the TRID area will generate about $63 million in new assessed value, in real terms,11 across the four contemplated phases (see Table 7.1). Phases 1a and 2 represent a relatively small portion of that increment, while Phases 1b and 3 represent a relatively large portion of that increment (see Table 7.2).

11 I.e. new developments represent an addition of $63 million in 2013 dollars. Since these new developments will take place in the future, some many years in the future, their actual addition at that time, including inflation, will be even more.

Table 7.1 – Estimated Future Assessed Value of Developments within the TRID Boundaries, by Development Site (in Real Terms)

Est. Future AV Development Site # Phase Current AV ($M) Δ ($M) ($M) TOD Site 1 1b $0.0 $6.9 $6.9 Spruced up Retail 2 3 $7.4 $8.4 $0.9 Wawa and Bank 3 1a $0.5 $1.2 $0.8 Old York Road Corridor 4 3 $7.1 $9.8 $2.7 North Auto Dealer Row 5 3 $12.3 $17.1 $4.7 Main Street Boutique 6 2 $0.7 $1.4 $0.7 General Mixed Use Space 7 2 $10.9 $12.3 $1.4 Penn State Arts Center 8 1b $0.9 $4.5 $3.5 Trader Joe's/Raymore & 9 3 $6.2 $11.6 $5.4 Flannigan Baederwood-Noble 10 3 $3.9 $9.3 $5.4 Corridor Rydal Park Senior 11 N/A $23.1 $23.1 $0.0 Community Old York Road Corridor 12 3 $2.0 $2.6 $0.7 South Old York Road Corridor 12 1a $0.4 $0.6 $0.2 South Proposed Residential 13 1b $0.0 $30.0 $30.0 Development Total $75.5 $138.7 $63.3 Source: CHPlanning (2013), Econsult Solutions, Inc. (2013)

Table 7.2 – Estimated Future Assessed Value of Developments within the TRID Boundaries, by Development Phase (in Real Terms)

Phase Current AV ($M) Est. Future AV ($M) Δ ($M) 1a $0.9 $1.8 $0.9 1b $0.9 $41.3 $40.4 2 $11.6 $13.7 $2.1 3 $38.9 $58.7 $19.8 N/A $23.1 $23.1 $0.0 Total $75.5 $138.7 $63.3 Source: CHPlanning (2013), Econsult Solutions, Inc. (2013)

Within the first 20 years of each TRID phase, some of the increase in property tax revenues associated with this increment of assessed value is captured by the TRID and used to pay for a bond that is in turn used to pay for TRID expenditures, most notably the contemplated improvements described in the previous section.

Some of the increase in assessed value within the TRID boundaries comes from new development, and some comes from higher annual appreciation rates in the value of these new developments as a result of nearby TRID improvements which are value- enhancing. These two categories of increases represent the amounts that are captured for the TRID.

Note that the increase in property tax revenues associated with the organic increase in assessed value from existing properties accrues in its entirety to the taxing jurisdictions; in other words, the value capture base above which amounts are captured by the TRID is not flat across time, but goes up over time, signifying that the taxing jurisdictions will see organic growth in their tax revenues from properties within the TRID boundaries even during the TRID period.

Over a 35-year period, the current assessed value within the TRID will reach about $400 million (see Figure 7.2). The $75 million in current assessed value within the TRID will have grown to over $200 million because of inflation. The new developments will account for an additional $160 million in assessed value, and, as noted, is assumed to be added in Years 1 (Phase 1a), 4 (Phase 1b), 8 (Phase 2), and 16 (Phase 3).12 Finally, higher annual appreciation rates within the TRID associated to improvements near specific developments accounts for another $35 million in increased assessed value.

12 As noted above, this is higher than the $63 million from the previous tables, because that $63 million represents the increase in 2013 terms, whereas the $160 million represents the increase as it will be reflected in the future, inclusive of inflation.

Figure 7.2 – Composition of Increase in Assessed Value within TRID Boundaries13

1a 1b 2 3

Source: Econsult Solutions, Inc. (2013)

7.6 Value Capture Potential for TRID and for Taxing Jurisdictions

These increases in assessed value within the TRID represent value capture for the TRID and new tax revenues for the Township, School District, and County. As discussed above, it is assumed that the taxing jurisdictions will continue to receive their tax revenues based on the current assessed value levels within the TRID, plus they will see increases in those amounts commensurate with inflation (assumed to be 3 percent). The TRID will capture 100 percent of the Township and County increment over and above that rising level, and will capture 50 percent of the School District increment over and above that rising level.

13 See Appendix H for additional detail on the composition of increase in assessed value within the TRID boundaries by phase.

Hence, the Township and County will receive their current levels of property tax revenues from within the TRID, plus have that amount grow by inflation over time, during the 20- year TRID period. The School District will receive their current levels of property tax revenues from within the TRID, plus have that amount grow by inflation over time, during the 20-year TRID period, and will receive half of any new property tax revenues associated with new development and TRID-specific property appreciation. All three taxing jurisdictions will receive all new tax revenues after the 20th year of each phase of the TRID, since at that point the TRID will no longer capture any funds.

Based on the approach and assumptions described earlier in this section, it is estimated that the TRID will generate an aggregate $14 million per year in property tax revenues by Year 36, the year at which the last of the TRID phases’ 20-year periods has expired (see Figure 7.3). This assumes the introduction of new developments assumed to be added in Years 1 (Phase 1a), 4 (Phase 1b), 8 (Phase 2), and 16 (Phase 3), as noted before.

Figure 7.3 – Composition of Increase in Property Tax Revenues within TRID Boundaries14

2 3

1a 1b

Source: Econsult Solutions, Inc. (2013)

Some of these new property tax revenue amounts are captured for the TRID. It is estimated that between all of the phases, the TRID will have about $15 million in funds for administration and improvements (see Table 7.3). This compares favorably with the aggregate costs of the recommended roster of improvements (see Table 7.4).

14 See Appendix I for additional detail on the composition of increase in property tax revenues within the TRID boundaries by phase.

Table 7.3 – TRID Value Capture Potential by Phase ($M)

1a 1b 2 3 Total $0.3 $9.3 $0.5 $4.8 $14.9 Source: Econsult Solutions, Inc. (2013)

Table 7.4 – Estimated TRID Revenues and Improvement Costs by Phase ($M)15

1a 1b 2 3 Total Revenues $0.3 $9.3 $0.5 $4.8 $14.9 Expenditures $3.7-$4.6 $5.9 $9.6-$10.5 Source: CHPlanning (2013), Econsult Solutions, Inc. (2013)

A word of caution is in order, though. First, the value capture potential estimates hinge on so many assumptions that actual value capture amounts are likely to exhibit a fairly large variance from these estimates. Since the TRID will launch in phases, that mitigates the risk exposure; in other words, it is not recommended that the TRID issue a bond for the full amount, since it is far too risky to depend on funds for repayment from potential developments that are many years out and whose reality and scale are therefore impossible to guarantee.

Second, other improvement and improvement-related expenditures may arise that are worth the TRID entity covering, and/or initial cost estimates may prove to be far lower than what is actually needed, whether because of cost inflation or because the intensity, quality, or nature of a particular improvement ends up being fundamentally different. Therefore, the TRID entity should proceed with caution, committing only to funds it knows it will secure and only on the best projects that improve the TRID area and make development within the TRID area more attractive.

7.7 Long-Term Tax Revenue Potential for Taxing Jurisdictions

The non-captured amounts go to the taxing jurisdictions. As noted above, there are three sources of new revenues to the taxing jurisdictions:

15 Note that the revenue amounts are inclusive of inflation, whereas the cost amounts are expressed in 2013 terms.

1. Taxing jurisdictions will collect new property tax revenues on any organic growth in existing properties, which are estimated to appreciate by an inflation rate of 3 percent per year.

2. The School District will participate at a 50 percent level, which will mean that while half of the additional property tax revenue increase due it will be captured by the TRID, the other half will go to the School District.

3. After the 20th year of each TRID phase, all new property tax revenues will go to all taxing jurisdictions.

Cumulatively, the taxing jurisdictions will receive an aggregate $310 million in tax revenues with the TRID over 40 years, versus $115 million without the TRID, for a difference of almost $200 million (see Table 7.5). On an annualized basis, and expressed in 2013 terms, this represents about $2.3 million more per year to the taxing jurisdictions by Year 40: about $200,000 for the Township, about $2 million for the School District, and about $160,000 for the County (see Table 7.6).

Table 7.5 – Cumulative Increase in Property Tax Revenues within TRID Boundaries ($M)16

W/TRID Township School District County Total By Year 10 $3.4 $28.6 $2.7 $34.7 By Year 20 $8.0 $71.9 $6.4 $86.3 By Year 30 $16.9 $143.2 $13.4 $173.4 By Year 40 $31.0 $253.7 $24.6 $309.3 W/o TRID Township School District County Total By Year 10 $2.0 $13.9 $1.6 $17.5 By Year 20 $4.7 $32.7 $3.7 $41.1 By Year 30 $8.3 $57.9 $6.6 $72.7 By Year 40 $13.1 $91.7 $10.4 $115.2 Difference Township School District County Total By Year 10 $1.4 $14.6 $1.1 $17.2 By Year 20 $3.4 $39.2 $2.7 $45.3 By Year 30 $8.6 $85.3 $6.8 $100.7 By Year 40 $17.9 $162.0 $14.2 $194.1 Source: Econsult Solutions, Inc. (2013)

16 These amounts represent the accumulation of multiple years’ worth of property tax amounts. Hence, the “by Year 10” figures refer to the sum of property tax amounts from Years 1-10; and the “by Year 40” figures refer to the sum of property tax amounts from Years 1-40.

Table 7.6 – Annualized Increase in Property Tax Revenues within TRID Boundaries, in 2013 Terms ($M)17

Difference Township District County Total By Year 10 $0.13 $1.26 $0.10 $1.49 By Year 20 $0.13 $1.42 $0.10 $1.65 By Year 30 $0.17 $1.68 $0.13 $1.98 By Year 40 $0.21 $1.95 $0.16 $2.32 Source: Econsult Solutions, Inc. (2013)

7.8 TRID Entity Expenditures

Heretofore, this section has concerned itself with revenue potential, both for the TRID entity and for the taxing jurisdictions. But the introduction of the TRID is not without its addition in expenditures as well.

Expenditures borne by the TRID itself will aim to focus as much as possible on the initiation, implementation, and ongoing maintenance of as many recommended improvements as possible. As discussed in the ensuing section, the TRID entity should aim to keep its overhead costs as streamlined as possible so that as much of the funds generated for the TRID entity within the TRID area are actually deployed within the TRID area for TRID improvements, rather than spent on administration and overhead. Said another way, the less that is spent on the operation of the TRID entity itself, the more that can be spent on the TRID area instead, and in particular the more and better improvements among those recommended in this report that can be successfully undertaken.

7.9 Taxing Jurisdiction Expenditures

Expenditures borne by the taxing jurisdictions involve the increase in existing expenditure categories associated with the densification of the TRID area from new development and redevelopment. This will affect each taxing jurisdiction in different ways.

17 These amounts represent the differences between the property tax revenues to each jurisdiction with the TRID versus without the TRID, discounted back to the present. Hence, the “by Year 10” figures refer to the cumulative difference in property tax amounts between “with TRID” and “without TRID” from Years 1-10, discounted to 2013 and divided by 10 (to represent the average amount for one year for the Years 1-10); and the “by Year 40” figures refer to the cumulative difference in property tax amounts between “with TRID” and “without TRID” from Years 1-40, discounted to 2013 and divided by 40 (to represent the average amount for one year for the Years 1-40).

The Township will bear the brunt of the added public service burden from increased development and redevelopment in the area. Expenditures on public safety, roads, and streetscape maintenance may increase as a result of added use. The Township currently spends about $20 million per year in these categories. As noted above, it is estimated that the Township will receive about $200,000 more per year in property tax revenues, in 2013 terms, as a result of the TRID.

Therefore, if the TRID represents a more than 1 percent increase in these expenditures, what the Township gains in new property tax revenues from the TRID will be offset by what it has to pay in additional policing, fire services, and other categories. This, of course, is offset by the additional amenities (both commercial and pedestrian) that are now available within the TRID area, as well as the increase in employment opportunities and other tax revenues that result from these developments.

The School District will bear additional costs if the TRID results in an increase in the number of public school students it will have to serve. For example, if some of the residential units added within the TRID area include school-age children, or if the increase in employment within the Township results in some people relocating into the Township who have school-age children, then this may result in added enrollment at schools within the District.

The School District currently spends about $18,000 per student. This represents the average cost per student; the marginal cost is likely be smaller, since there are some fixed costs that the School District bears that do not need to go up if enrollment increases.18 Given that it is estimated that the School District will receive about $200,000 more per year in property tax revenues, in 2013 terms, as a result of the TRID, this means that if the TRID results in something on the order of 120 to 200 new students, those revenue gains to the School District will be completely offset by the increased expenditures associated with educating additional students.

If School District schools are at capacity, such that the additional of new students requires significant capital expenditures, the TRID may be a negative even if adds fewer students than that. Conversely, if the School District’s true marginal cost (i.e. the cost of educating one more student) is far less than $18,000, the TRID may be a positive even if it adds more students than that.

The County is not likely to bear significant additional costs as a result of the TRID. Its expenditures are not likely to increase due to the intensified development within the TRID. Therefore, its annual gain from the TRID is likely to be close to the estimated $160,000 from above.

18 Average cost per student = total budget divided by total enrollment. Pennsylvania Department of Education does not recognize this approach to calculating per pupil expenditures, and quotes a figure of about $12,000 per student.

7.10 Sensitivity Analysis

These estimates are based on a base set of assumptions. It is possible that as TRID plans proceed, these assumptions should be significantly changed to reflect new directions and different choices. For example, should the TOD site reflect a different set of uses, or if the School District participates at a higher or lower level, then value capture amounts and amounts generated to the taxing jurisdictions will change commensurately. As time passes and plans solidify, these inputs will become more known, and estimates can be adjusted accordingly so that related plans can be expanded or compressed in turn.

For this sensitivity analysis, four exclusive alternative scenarios were projected. First, the TOD site in Phase 1b was modeled under two alternative use profiles, both developed and explored first in the 2012 Noble Abington Transit-Oriented Development Plan. The base scenario, modeled above, includes 72 residential units, a 5-story garage structure, and ground floor retail. The first alternative is a 144-room hotel surrounding a 5-story garage structure with ground floor retail. The second is just the 5-story garage structure with ground floor retail (i.e. no residential and no hotel).

Should the TOD site end up being closer to one of these alternative use profiles, the value capture potential for the TRID and the net new tax revenues to the taxing jurisdictions will shift from the base estimates shown above (see Table 7.7). Relative to the base scenario, the hotel scenario will generate more funds for the TRID (Phase 1b only; it does not affect other TRID phases) and for the taxing jurisdictions because it represents a more intensive development. Relative to the base scenario, the garage-only scenario will generate fewer funds for the TRID and for the taxing jurisdictions because it represents a less intensive development.

Next, the value capture potential was estimated assuming different levels of School District TRID participation. The assumption for the base scenario above was 50 percent; here, 25 percent and 75 percent participation was modeled (see Table 7.8). Relative to the base scenario, the 25 percent participation level scenario means less for the TRID and more for the School District (it does not affect the Township or County). Relative to the base scenario, the 75 percent participation level scenario means more for the TRID and less for the School District.

Table 7.7 – Sensitivity of Core Estimates to Changes in TOD Site Characteristics

Base: Residential Alt 1: Hotel Alt 2: Garage Only

Value Capture Potential $9.3 +10% -10% for Phase 1b Only ($M) 40-Year Cumulative Increase to Township $18 +2% -2% for All Phases 40-Year Cumulative Increase to District for $162 +3% -3% All Phases 40-Year Cumulative Increase to County for $14 +2% -2% All Phases Source: Econsult Solutions, Inc. (2013)

Table 7.8 – Sensitivity of Core Estimates to Changes in School District Participation Levels

Base: 50% Alt 1: 25% Alt 2: 75%

Value Capture Potential $14.9 -33% +33% for All Phases ($M) 40-Year Cumulative Increase to Township $18 0% 0% for All Phases 40-Year Cumulative Increase to District for $162 +5% -5% All Phases 40-Year Cumulative Increase to County for $14 0% 0% All Phases Source: Econsult Solutions, Inc. (2013)

8.0 TRID MANAGEMENT STRUCTURE

8.1 Overview

The purpose of this section is to lay out the many issues associated with structuring the physical TRID management entity. Participation in the TRID entity provides individuals and organizations with leverage in decision-making but also exposes them to the risks associated with the TRID. Structuring the TRID entity is therefore a matter of both stakeholder inclusion, sound decision-making organization, and risk exposure management.

As noted above, while it is inclusive of stakeholder feedback, this planning report has not been fully vetted by all relevant stakeholders. Therefore, the information and recommendations contained within this section should not be imbued with more finality than is warranted. Concepts and suggestions should not close discussion by conveying that important structural decisions have already been decided (since they have not yet been decided), but should rather open discussion by outlining possibilities and soliciting reactions from which a final structure can be developed.

8.2 TRID Management Entity Purpose

It is important to specify what the purpose of the TRID management entity is and is not. Contained within the TRID area are multiple stakeholders, which in the aggregate represent overlapping and oftentimes complementary roles and agendas. Therefore, the purpose of the TRID management entity is not to replace any of those roles or agendas, but rather to overlay on top of that framework of roles and agendas a specific function of collecting captured funds from within the TRID and directing them to improvement projects within the TRID.

The structure of the TRID entity should therefore reflect the diversity of stakeholders who have an interest in the developments being envisioned for the TRID area and the improvements being recommended within the TRID area. This is because the TRID is not about fulfilling its own objectives in a vacuum, but rather fulfilling its function to the end of the many intersecting objectives of the key stakeholders in the TRID area.

Here is where the many intersections that TRIDs represent come into sharpest focus. First, there are the literal intersections that make up the TRID area, with the goal of TRIDs being to stimulate greater use of the center-point transit stop as well as greater circulation to and through the TRID area as a whole. Second, there is the intersection between developments and improvements: developments are needed to fund improvements, and improvements are needed to attract developments. Third, there is the intersection between the many stakeholders that touch the TRID area and that have

Econsult Solutions | 1435 Walnut Street, Ste. 300 | Philadelphia, PA 19102 | 215-717-2777 | econsultsolutions.com TRANSIT REVITALIZATION INVESTMENT DISTRICT (TRID) PLANNING REPORT FOR NOBLE STATION IN ABINGTON TOWNSHIP 77 had a voice in past and present planning exercises regarding the TRID area. The TRID entity’s function in these intersections is to ensure that funds being collected for the TRID are in fact deployed towards the very improvements that catalyze development, connect the TRID area, and satisfy the TRID’s stakeholders.

8.3 TRID Management Entity Organizational Structure

Based on this function and this approach, it is recommended that the TRID entity is governed by a board of directors consisting of members from the following four entities: (1) SEPTA, (2) the Township, (3) the District, and (4) the County. The specific distribution of voting control will need to be determined among these four stakeholders, and should reflect a combination of relative contribution into the TRID, relative ownership of various ongoing maintenance elements of the TRID area, and individual preferences concerning organizational involvement and risk exposure.

It is recommended that physical administration of TRID functions fall within an existing entity, in order to minimize overhead costs and ensure that as much of the TRID funds are deployed towards actual improvements rather than administrative costs. A department within the Township can serve such a function, given its closer connection to the specific actions that the TRID entity will need to perform.

It is also recommended that the TRID create a second, non-voting advisory committee. The purpose of this body will be to assist the TRID board in connecting past recommendations and present realities with the future growth trajectory of the TRID area, and to ensure that these prioritization decisions are reflective of the broad base of stakeholders that are touched by the TRID area. Hence, this second body might consist of members from the following groups: 1. Area developers 2. Area businesses and the associations that represent them 3. Area residents and the associations that represent them 4. Civic and advocacy groups

8.4 TRID Agreement

Over the next several months, the Township should meet with the stakeholders that would be part of the TRID board to address outstanding questions, discuss preferences and concerns, and move towards a common understanding of aims and structure. A TRID agreement should be formed, which serves as a sort of memorandum of understanding between the entities that make up the TRID board, and as a framework

Econsult Solutions | 1435 Walnut Street, Ste. 300 | Philadelphia, PA 19102 | 215-717-2777 | econsultsolutions.com TRANSIT REVITALIZATION INVESTMENT DISTRICT (TRID) PLANNING REPORT FOR NOBLE STATION IN ABINGTON TOWNSHIP 78 within which these entities can function so as to achieve the mutually agreed upon aims at a suitable level of participation and exposure.19

19 See Appendix J for a draft form of TRID agreement from which the Township and other stakeholders can build.

9.0 CATALYZING DEVELOPMENTS

9.1 Overview

The purpose of this section is to assess the true development landscape in the TRID area and provide an honest assessment of whether what is hoped for in the TRID can actually come to pass. As noted above, much of the past inactivity in TRIDs across the Commonwealth can be attributed to a challenging national landscape for development, and many of those challenges persist into the present. However, given those macro- economic conditions, there are some things the Township can do to catalyze developments within the TRID area.

9.2 Do Macro-Economic Conditions Trump All Other Factors?

Although the Noble TRID is a creature of public entities – the Township, District, County, and SEPTA – it succeeds only to the extent that it can attract private development. In other words, the TRID can form and in doing so represent a symbolic and organizational prioritization of a particular area for development, and it can generate specific funds and investments to make development in that area more attractive.

Nevertheless, it relies on private developers to agree that the TRID area is a worthy place to invest development capital. There must be sufficient market potential in the overall area. And, the existence of the TRID entity itself, with its attendant public sector focus as well as infrastructure improvements and streetscape investments, must also induce developers to act on specific development sites.

The TRID Act of 2004 made possible new flexibility for municipalities and transit agencies to work together, the value capture mechanism to help pay for improvements to make developments more attractive, and priority funding from the Commonwealth to respond to developers’ financing gaps. While the first two of these provisions are still in effect, it is the drying up of gap funding, combined with a shrunken marketplace and a constrained financing environment,that has prevented the advancement of TRIDs beyond the planning stage. It is not hard to wonder if such conditions will continue into the foreseeable future, further blocking the successful implementation of a TOD within a TRID.

9.3 Development Optimism Still Persists

Nevertheless, there is no reason for wholesale pessimism. Demand is returning from previous lows as the market recovers and unemployment abates. The Township, with its good transit access and proximity to Center City Philadelphia, is well positioned to capitalize on emerging trends in employment, shopping, and mobility preferences. Large-scale projects may still be too risky in the contemporary environment, but it is still possible to string together a steady stream of smaller projects, building up to a mass of activity and success in a designated area. The ability to secure large funding amounts to fill financing gaps has not shriveled completely: evience of this can be seen in the $35 million that has been dedicated for the Cricket Lot development in Ardmore.

9.4 Developer Selling Points

If development is difficult but not impossible, it behooves the Township all the more to maximize the benefits associated with the TRID framework. The Township should ensure that there is unified sentiment among its fellow TRID board members (the District, the County, and SEPTA) to work towards mutually agreeable solutions for private developers. This includes a honest assessment among all parties as to what each is seeking to gain, what each is willing to invest in resources and attention, and how comfortable each is with participation levels and risk exposure.

Finally, TRID concepts should be distilled into a basic message so that its selling points can be digested by prospective developers (see Figure 9.1). Specific sites should be marketed, with a focus on articulating the intersection between the site’s physical characteristics, the overall area’s market potential, and the fit of the site (both in terms of its mix of uses and its aesthetics) within a larger TRID vision. And, the value capture mechanism, while initially complicating, should be sold as a way for some of an individual site’s property tax bill to be dedicated for very localized used and specifically a menu of improvements that will elevate the site’s attractiveness for development.

Figure 9.1 – TRID Selling Points to Prospective Developers

1. Value capture mechanism = some property tax revenues are captured for very localized use

2. Coordination of improvements that help make that specific area more accessible and attractive

3. The attention of multiple jurisdictions and levels of government to the end of encouraging greater development and use of a particular area

4. Priority preference of local and state government initiatives designed to make possible TOD projects and to encourage the actualization of TOD principles

5. Improvements are not only useful in relationship to the development site but to the overall area, with particular gains associated with better activating the Noble Station and thus conferring greater value through accessibility to a broader marketplace of users

Source: Econsult Solutions, Inc. (2013)

The last point above is crucial. The goal of TRIDs is not to catalyze transit-proximate developments but rather transit-oriented ones. The overall area is attractive for development in its own right because it has the potential for a nice mix of uses in a transit-rich area that is accessible to Center City Philadelphia. Through the mechanism of TRID, it can be made even more attractive by improvements and investments that more effectively connect the whole area to the Noble Station that serves as its center- point. This will provide a richer and more aesthetically pleasing pedestrian experience that therefore encourages more and longer use by visitors. .

10. NEXT STEPS

10.1 Planning Report as Starting Point

This planning report has endeavored to tie together past recommendations and present concepts for the Noble Station area, and to do so within a framework that is consistent with sound TOD principles and with the intention of the TRID Act of 2004 to make possible more TODs. From this exercise has emerged a short list of recommendations for development and improvements, and an extensive financial analysis of what those developments and improvements mean in terms of funding for the TRID and tax revenues for the taxing jurisdictions.

As noted above, TRID Planning Studies typically include more public and stakeholder engagement than was possible in the confines of this planning report. Therefore, it is important to frame this planning report not as a fixed document that is the endpoint of a now-completed outreach process, but rather as a fluid document that can serve as the opening line for an ongoing discussion with the general public and with specific stakeholder groups.

10.2 Stakeholder Outreach

The most important and immediate next step from here is the convening of key stakeholders, most notably the District, County, and SEPTA. The Township needs to convey its interests and preferences regarding the TRID, and also better understand how each of its potential TRID entity partners is evaluating this opportunity (see Table 10.1).

Table 10.1 – Questions to Ask of Fellow TRID Entity Partners

1. What are the positives and negatives associated with densifying this part of the Township?

2. What are the implications of a TRID on your finances?

3. How does a TRID represent additional risk exposure for you, and how can that exposure be mitigated?

4. Where are there opportunities to come together on mutual investments in priority areas in order to achieve mutual benefit?

5. How do you want to be informed and involved as this process evolves over time?

Source: Econsult Solutions, Inc. (2013)

Through these discourses, hopefully a common way forward can emerge, in which:

 The TRID is structured in such a way that each entity feels it is within its comfort level in terms of financial, legal, and organizational exposure;

 Each entity feels that plans will result in outcomes that are appealing; and

 Each entity feels that those plans will be conceived and carried out through a structure that it has suitable participation in and influence over.

10.3 Developer Outreach

From there, developers should be brought into the discussion, since they represent the actual capital and effort that needs to be deployed to make specific development projects work. As noted in the previous section, a case for the TRID area, and for the benefits to developers that the TRID structure can represent, needs to be made, both in written and verbal format. Through this outreach effort, the Township should come to know whether and how the TRID area and the TRID structure has resonance with developers, how their evaluation of the development potential aligns with this planning report and other previous reports, and how proposed development uses synchronize with the Township’s own goals.

The last point warrants further elaboration. One of the Township’s functions, in concert with counterparts at the County level, is to have an overall land use framework, to organize and encourage the right uses in the right places for maximum benefit to the Township and its residents and merchants. Even before this TRID planning report commenced, the Noble Station area was already a place of interest for the Township and was being planned accordingly as a place where additional development could be borne and additional improvements could catalyze that new development.

But actual development requires decisions by private developers to deploy capital, make plans, and bring those concepts into reality. And so as the Township advances the Noble TRID through to implementation, it must come alongside those developers, state its preferences for the TRID area, and listen to where developers think development success can be had.

10.4 Public Outreach

Both stakeholders and developers will appreciate having an initial audience on the issue of a TRID in the Township. But the general public – local residents, merchants, and the groups that represent them – also has an important say in whether and how the Noble TRID should advance. Once some semblance of overall unity has been reached across stakeholders and with potential developers, the Township should schedule a public outreach meeting to inform the general public about plans to date.

Many previous studies have been completed on the TRID area, and each of them had a public engagement component, so many of the concepts and improvement options detailed in this report have gone through some level of public scrutiny. Nevertheless, TRIDs remain a new and unknown subject, and the general public deserves to know what specific developments, improvements, and mechanisms are being contemplated for the TRID area. Thus, while the public meeting need not be exhaustive, it should consist of the following components:

1. Summary of what past planning efforts yielded

2. What is a TRID and why is it being contemplated for the Noble Station area

3. What are some development and improvement concepts being discussed

4. Question - do these concepts resonate with residents and merchants

5. What is the nature of the Township’s discussions with the District, County, and SEPTA, and how do their objectives align with the Township’s

6. What developers have expressed interest, and how do their perspectives align with the Township’s

7. How does the implementation process go from here

10.5 Keeping the Discussing, Planning, and Acting Going

As has been the case with the past planning studies from which this report is built, this planning report has endeavored to bring together the consensus opinion on a particular area of the Township, introduce the pieces of that consensus into a slightly new framework, and advance the knowledge of the Township to the end of making increased development near the Noble Station more possible and more impactful. While no TRIDs have advanced past the planning phase anywhere in the Commonwealth, this fact also presents an opportunity for the Township to be the first to use this mechanism to bring together key stakeholders and attract private developers, such that a coordinated set of developments and improvements are brought into being. In doing so, it can serve as a groundbreaker in the use of TOD concepts and inter-stakeholder collaboration to maximize the development potential of a particular transit-proximate site, with quality of gains for residents, merchants, and other users.

APPENDIX A – ABOUT ECONSULT SOLUTIONS, INC.

Econsult Solutions, Inc. provides businesses and public policy makers with economic consulting services in urban economics, real estate economics, transportation, public infrastructure, development, public policy and finance, community and neighborhood development, planning, as well as litigation support.

Econsult Solutions has the capability to engage in projects of any size, from comprehensive long-term studies involving complicated economic arguments and extensive data analysis, to short-term advisory support. Whether working independently or on joint-venture projects, our flexibility and customized approach allow us to respond to a vast range of client needs.

Our scope is large, and our expertise specific. Econsult assists clients in the evaluation of economic and fiscal outcomes of programs and developments, offers city and regional planning insight and advice, provides GIS analytic services, yields financial projections and advises investors and governments on projects, developments, and policy outcomes, and has the economic skills and expertise to process, analyze and manage large and complex datasets.

Our Principals and Senior Advisors include nationally recognized experts in urban development, real estate, government and public policy, planning, transportation, non- profit management, business strategy and administration, as well as litigation and commercial damages. Staff members have outstanding credentials, including active positions at the university level, wide experience at the highest levels of the public policy process and extensive consulting experience.

APPENDIX B – ABOUT CHPLANNING

CHPlanning, Ltd., established in 1998, is a MBE/WBE registered planning firm with offices in Chester City and Philadelphia, Pennsylvania. CHPlanning provides innovative and cost-effective solutions in the areas of urban design, transportation planning, landscape architecture, municipal planning, and community outreach programs for public and private clients throughout the United States. We have an outstanding reputation for listening to our clients and delivering tangible results.

The firm has a strong history of providing its clients with quality planning services working within time and budgetary constraints. CHPlanning staff adheres to corporate values ensuring our clients attain their planned goals with the utmost confidence. CHPlanning offers the following competitive advantages:

 An outstanding reputation for serving our clients’ needs unconditionally and effectively;

 Creative vision to develop and implement innovative solutions to our client’s challenges;

 A highly-competent team of skilled and dedicated professionals; and

 Client-centered planning professionals that truly listen in order to fully understand and appreciate the project challenges entrusted to them so they can respond with effective solutions.

CHPlanning’s staff of technically proficient and well-qualified planners is accustomed to responding to the changing needs of a fast-paced world. Our staff has strong project management skills and experience with complex projects and diverse stakeholders.

Much of CHPlanning’s work includes public engagement and community outreach. We take great pride in our proven effective communication with stakeholders. We believe that public engagement should not be merely information dissemination, but about building lasting partnerships with stakeholders and community groups. We tailor our public involvement strategies to community needs and utilize community surveys, visioning workshops, focus groups surveys, and interviews. We strongly believe that building trust and confidence with stakeholders is the basis for successful implementation of planning products.

APPENDIX C – TRANSIT REVITALIZATION INVESTMENT DISTRICT ACT OF 2004

PRIOR PRINTER'S NOS. 1167, 3427, 3497, PRINTER'S NO. 4760 4666

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No. 994 Session of 2003

INTRODUCED BY RUBLEY, GEIST, STETLER, ARGALL, BEBKO-JONES, BROWNE, BUNT, CAPPELLI, CAWLEY, CIVERA, CLYMER, CORRIGAN, COSTA, CRAHALLA, CREIGHTON, DALEY, DERMODY, DeWEESE, FRANKEL, FREEMAN, HARPER, HENNESSEY, HERSHEY, HORSEY, JOSEPHS, KOTIK, LAUGHLIN, LEACH, LEWIS, MANDERINO, MANN, McCALL, McGEEHAN, MELIO, PETRARCA, PETRONE, READSHAW, REICHLEY, ROEBUCK, SANTONI, SCHRODER, SOLOBAY, STEIL, STURLA, TANGRETTI, E. Z. TAYLOR, THOMAS, TIGUE, VITALI, WALKO, WANSACZ, WATSON, WOJNAROSKI AND YOUNGBLOOD, MARCH 26, 2003

AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES, NOVEMBER 18, 2004

AN ACT

1 Empowering municipalities, counties and public transportation 2 agencies to work cooperatively to establish Transit 3 Revitalization Investment Districts (TRID), including 4 partnerships with the National Railroad Passenger Corporation 5 requiring planning studies, comprehensive plan and zoning 6 amendments and use of existing statutes and techniques to 7 achieve transit-oriented development, redevelopment, 8 community revitalization and enhanced community character 9 through TRID creation; establishing value capture areas as a 10 means to reserve and use future, designated incremental tax 11 revenues for public transportation capital improvements, 12 related site development improvements and maintenance; 13 promoting the involvement of and partnerships with the 14 private sector in TRID development and implementation; 15 encouraging public involvement during TRID planning and

16 implementation; and providing for duties of the Department of 17 Community and Economic Development.

18 The General Assembly of the Commonwealth of Pennsylvania 19 hereby enacts as follows: 20 CHAPTER 1 21 GENERAL PROVISIONS

1 Section 101. Short title. 2 This act shall be known and may be cited as the Transit 3 Revitalization Investment District Act. 4 Section 102. Declaration of policy. 5 The General Assembly finds and declares as follows: 6 (1) The overall purpose and legislative intent of this 7 act is to authorize public transportation agencies throughout 8 this Commonwealth to work cooperatively with counties, local 9 governments, transportation authorities, the private sector 10 and the National Railroad Passenger Corporation (AMTRAK) and 11 other providers of public transportation and passenger rail 12 services to create and designate Transit Revitalization 13 Investment Districts (TRIDs). 14 (2) The specific purposes and intent of a designated 15 TRID are to: 16 (i) Promote local, county and regional economic 17 development and revitalization activities through private 18 sector investment, reinvestment and joint development 19 activities in conjunction with public transportation 20 improvements. 21 (ii) Encourage multimunicipal, cooperative 22 approaches to generate new investment, reinvestment and 23 revitalization through transit-oriented development, 24 around rail transit stations and along public 25 transportation corridors. 26 (iii) Increase overall ridership on public 27 transportation systems, including AMTRAK, while 28 generating additional revenues for current and expanded 29 services, capital improvements and related ongoing 30 maintenance.

1 (iv) Encourage and support municipal and 2 multimunicipal comprehensive plan implementation, 3 including consistency of plans at the local, county and 4 regional levels. 5 (v) Stimulate public-private partnerships created by 6 prospective development opportunities around, within or 7 adjacent to the transit system, station areas and transit 8 system components. 9 (vi) Establish appropriate mechanisms to capture the 10 real estate taxation and other values added by joint 11 development activities for reinvestment in the transit 12 system and local communities. 13 (vii) Encourage greater community involvement in 14 TRID location, design and implementation and resulting 15 investment activities.

16 (viii) Promote flexible, cooperative, coordinated 17 and enhanced support for innovative, intermodal solutions 18 in TRID development and implementation activities by 19 municipal officials, public agencies, nonprofit 20 organizations and the private sector. 21 (ix) Support TRID implementation by maximizing use 22 of existing Federal and State laws and programs that are 23 consistent with the purposes of this act. 24 Section 103. Definitions. 25 The following words and phrases when used in this act shall 26 have the meanings given to them in this section unless the 27 context clearly indicates otherwise: 28 "AMTRAK." The National Railroad Passenger Corporation. 29 "Department." The Department of Community and Economic 30 Development of the Commonwealth.

1 "Public transportation agency." A public transit authority 2 or similar entity, created through the laws of this 3 Commonwealth, charged with the provision of mass transit 4 services to the traveling public, that owns and maintains or is 5 authorized to own and maintain a physical plant, including 6 rolling stock, stations, maintenance and support facilities. 7 "Public transportation provider." A public or private entity 8 that operates or is authorized to operate intercity or local 9 commuter passenger rail services within this Commonwealth that 10 are open to the general public and that owns and maintains or is 11 authorized to own and maintain a physical plant including 12 rolling stock, stations, maintenance and support facilities. 13 "Transit-oriented development." Development concentrated 14 around and oriented to transit stations in a manner that 15 promotes transit riding or passenger rail use. The term does not 16 refer to a single real estate project, but represents a 17 collection of projects, usually mixed use, at a neighborhood 18 scale that are oriented to a transit node. 19 "TRID." A Transit Revitalization Investment District created 20 in accordance with this act. 21 "TRID planning study." A study required to be undertaken by 22 one or more municipalities, with the active involvement of a 23 public transportation agency and the pertinent county or 24 counties, for the purpose of establishing the boundaries, 25 existing environmental conditions, existing and proposed land 26 use, property availability, real estate market conditions, 27 development potential, including use of air space rights, 28 required zoning amendments, desired infrastructure and necessary 29 transportation-related improvements and a financial plan, 30 including funding sources, a proposed amortization schedule,

1 where applicable, and estimated future maintenance requirements, 2 to support the designation and implementation of a proposed 3 TRID. 4 "Value capture area." An area coincident with the boundaries 5 of a TRID, established simultaneously with TRID designation, in 6 accordance with this act, in which real estate tax revenues and 7 any other designated tax revenues shall, at a minimum, be shared

8 by the participating local jurisdiction or jurisdictions and 9 public transportation agency or agencies, for the purpose of 10 implementing a TRID. 11 CHAPTER 3 12 TRID CREATION AND LOCATION 13 Section 301. Criteria for proposed TRID. 14 Local municipalities, counties, transportation authorities 15 and public transportation agencies proposing to define and 16 develop a TRID shall use the following criteria and process: 17 (1) Eligible TRID locations may include any geographic 18 area of a municipality or municipalities, including vacant, 19 underutilized or potentially redevelopable land, within an 20 area generally formed by a minimum radius of one-eighth mile, 21 not to exceed a radius of one-half mile, from a railroad, 22 transit, light rail, busway or similar transit stop or 23 station, measured from the centerline of the track or roadway 24 traversing the station or stop location. TRID designation may 25 also include new station locations proposed in conjunction 26 with a planned public transportation service, as defined on 27 an adopted county, regional or public transportation agency 28 plan. 29 (2) The specific boundaries of a TRID may be expanded or 30 reduced based on local circumstances such as local economic

1 development and planning goals, community character, property 2 boundary and scale variations, but only when: 3 (i) authorized by the governing body or bodies of 4 the affected jurisdiction or jurisdictions in cooperation 5 with the pertinent public transportation agency; and 6 (ii) the rationale for the boundaries is supported 7 by the findings of the required TRID planning study. 8 (3) A local municipality or municipalities shall further 9 define and support the rationale for the TRID designation 10 through a TRID planning study, as well as appropriate 11 amendments to the municipal comprehensive plan, zoning 12 ordinance and other pertinent regulations. 13 (4) A local municipality may designate the county 14 planning agency to undertake or assist the TRID planning 15 study on its behalf. 16 (5) An existing neighborhood improvement district, tax 17 increment district or urban renewal area may be used as the 18 basis for the boundaries of a TRID, when justified by the 19 TRID planning study required in section 304. 20 Section 302. TRID designation. 21 (a) Designation.--Local municipalities and counties working 22 with public transportation agencies, transportation authorities, 23 AMTRAK, passenger rail transportation providers, or any 24 combination thereof, may designate TRIDs in advance of 25 implementation of a new public transit service, or in 26 conjunction with an existing public transportation service and 27 in advance of or in conjunction with actual development 28 proposals. 29 (b) Agreement.--To create a TRID, in addition to the 30 planning study described in section 301(3), the municipality or

1 municipalities shall enter into an agreement with the transit 2 agency that defines the activities and commitments of each party 3 to the TRID, including any specific actions or financial 4 participation to help implement the TRID. The agreement shall 5 include the development agreement specified in section 504, as 6 well as a description of the TRID management entity described in 7 section 502(4). 8 Section 303. Implementing authority. 9 A participating county, local municipality, transportation 10 authority and public transportation agency may designate on 11 their behalf the county redevelopment authority to assume 12 responsibility for TRID implementation. 13 Section 304. TRID planning study factors. 14 The scope and scale of transit improvements and community 15 facility improvements, as well as any needed support facilities, 16 shall be assessed in the TRID planning study. The TRID planning 17 study shall also serve as the basis for a comprehensive plan 18 amendment to establish the TRID, if the municipality has a 19 currently adopted comprehensive plan. The following shall apply: 20 (1) The planning study shall consider the need for 21 capital improvements to transit-related facilities and 22 adjacent public infrastructure including roads, sidewalks and 23 water, sewer and storm drainage service and public 24 facilities, as well as opportunities for private sector real 25 estate development and ways in which such facilities, 26 services and development can be financed. 27 (2) Municipalities undertaking a TRID planning study 28 shall receive priority consideration for planning and 29 implementation grants and technical assistance from the 30 department, working in partnership with the pertinent county

1 planning agency or agencies and other State agencies with 2 grant or loan programs that may be applicable to TRID 3 planning or implementations. Any funding appropriated to the 4 Department of Community and Economic Development for the 5 purpose of carrying out this act is intended to assist 6 counties and local governments, on a 25% matching basis, to 7 undertake TRID planning studies and related implementation 8 activities. Individual grants for a TRID planning study or 9 implementation project shall not exceed $75,000. The 10 department in consultation with the Department of 11 Transportation shall administer the supplemental TRID program 12 through the existing land use planning and technical 13 assistance program, with application guidance as necessary. 14 (3) Commonwealth agencies are directed to provide State 15 resources, programs and new capital investments that will 16 assist local governments, transportation authorities and 17 transit agencies to implement TRIDS. 18 Section 305. Roles and responsibilities of public 19 transportation agencies and municipalities. 20 As guidelines to implement the findings and recommendation of 21 the TRID planning study, the following roles and 22 responsibilities are defined:

23 (1) The scope and scale of needed or proposed transit 24 capital improvements within the TRID area are the 25 responsibility of the partnering public transportation 26 agency. The cost, financing, phasing and schedule of all 27 transit-related improvements shall be included in the public 28 transportation agency's adopted capital program. 29 (2) The scope and scale of needed or proposed support 30 facilities, highway accessways, and community or neighborhood

1 facility improvements, for example, sidewalks and recreation 2 facilities, are the responsibility of the partnering county 3 and local jurisdiction or jurisdictions, and may include 4 support from the private sector. 5 (3) Notwithstanding these stated roles and 6 responsibilities, the parties to a TRID shall be responsible 7 for defining the administrative and management roles and 8 responsibilities that will be most appropriate to achieve 9 implementation of the TRID in their community. 10 Section 306. Amendments to TRID planning study. 11 Proposed real estate development or redevelopment may trigger 12 additional needs for transit improvements and community facility 13 improvements or support facilities, and shall be accommodated 14 through pertinent amendments of the TRID planning study and 15 county, multimunicipal or local municipal comprehensive plan. 16 Section 307. Municipal cooperation. 17 Nothing in this act shall preclude two or more 18 municipalities, or a municipality and a transportation 19 authority, from working together cooperatively with a public 20 transportation agency to define and establish one or more TRIDs 21 along a public transportation corridor, using the criteria 22 established under this act. 23 CHAPTER 5 24 LAND DEVELOPMENT POWERS OF PUBLIC TRANSPORTATION AGENCIES 25 Section 501. Authority to acquire and improve property. 26 Consistent with the existing authority or limitations of 27 public transportation agencies to condemn and acquire land for 28 public transportation purposes, such entities are hereby 29 authorized to acquire and improve property located within a 30 designated TRID for real estate development purposes, provided

1 such acquisition and improvement: 2 (1) Is consistent with any pertinent municipal 3 comprehensive plan and TRID planning study. 4 (2) Is coordinated with pertinent county and local 5 jurisdictions and redevelopment or other special purpose 6 authorities. 7 (3) Furthers the stated purposes of this act. 8 (4) Does not exceed the minimum land area necessary to 9 accomplish the needs specified in the TRID planning study and 10 the development agreement. 11 Section 502. Development or redevelopment of property. 12 Development or redevelopment of property within a TRID shall 13 generally occur in the following manner: 14 (1) The public transportation agency may acquire the

15 property, improve it for future development, such as site 16 clearance, utility work, environmental remediation and 17 similar improvements, and work cooperatively with the 18 pertinent local jurisdiction or jurisdictions and 19 implementing agencies to offer it for sale to the private 20 sector for use or uses consistent with the adopted TRID plan. 21 Within a designated TRID area, any future development, <-- 22 redevelopment or similar construction activity shall not be 23 required to comply with the provisions of the act of May 1, 24 1913 (P.L.155, No.104), entitled, "An act regulating the 25 letting of certain contracts for the erection, construction, 26 and alteration of public buildings." 27 (2) Alternatively, the public transportation agency may 28 advertise the presence of available development sites within 29 a TRID, including a map of potentially developable or 30 redevelopable properties and invite interested developers to

1 submit proposals in cooperation with the pertinent local 2 jurisdiction or jurisdictions and implementing agencies. 3 (3) In the case of either paragraph (1) or (2), the 4 public transportation agency may not be the primary real 5 estate developer, and joint development activities are 6 confined to the construction of support and access 7 facilities, that is, vehicular access, parking, pedestrian 8 ways, building pads, foundation columns, signage and similar 9 items. 10 (4) The partnering TRID local municipality or 11 municipalities shall designate a management entity for the 12 TRID which may be a municipal authority or joint municipal 13 authority, in accordance with the requirements of 53 Pa.C.S. 14 Ch.56 (relating to municipal authorities) to manage and 15 facilitate TRID implementation. The local municipality or 16 municipalities involved in the TRID shall retain policy and 17 oversight responsibilities for all budgetary and programmatic 18 actions of the designated TRID management entity. 19 (5) Creative partnerships with AMTRAK, passenger rail 20 transportation providers, transportation authorities and the 21 private sector to accomplish TRID purposes that use the 22 benefits of AMTRAK's and passenger rail service providers' 23 existing real estate development powers are both desirable 24 and encouraged. 25 (6) Neighborhood improvement districts, business 26 improvement districts or similar entities may be designated 27 to manage the TRID implementation activities. 28 Section 503. Coordination of development activities. 29 The public transportation agency shall coordinate development 30 activities with the pertinent county or local redevelopment

1 authority, planning commission and governing body. If such 2 entities are able to accommodate the land acquisition or 3 marketing needs of the TRID in a more timely fashion, an 4 agreement may be established between the public transportation 5 agency and such entities to implement this aspect of the overall 6 TRID program.

7 Section 504. Development agreements. 8 In furtherance of the agreement specified in section 302, the 9 partnering municipality, transportation authority, public 10 transportation agency and, if participating, county 11 representatives, including the designated management entity, 12 shall enter into a development agreement with the pertinent 13 private sector development organization or organizations to 14 implement the proposed TRID. The development agreement shall 15 stipulate the final project scope, as well as the partners' 16 roles, responsibilities, financing arrangements, schedule of 17 improvements and the exactions or contributions to the project. 18 CHAPTER 7 19 VALUE CAPTURE APPROACHES 20 Section 701. Creation of value capture area. 21 In conjunction with the formal establishment of the TRID 22 boundaries, a coterminous value capture area shall 23 simultaneously be created to enable local municipalities, school 24 districts, the county and the public transportation agency to 25 share the increased tax increment of real estate and other 26 designated tax revenues generated by new real estate investment 27 within the TRID. The participants in the TRID, through the 28 designated management entity, shall develop an administrative 29 and project schedule and budget to implement the project, 30 including future maintenance needs, as defined in the TRID

1 planning study, as well as the shares and use of such tax 2 revenues as are projected to be generated from the TRID value 3 capture area. The participating municipality or municipalities 4 may review and revise the TRID budget. 5 Section 702. Dedication of tax revenues. 6 Tax revenues generated within a TRID shall be dedicated to 7 completion and future maintenance of the specific and necessary 8 improvements designated in the comprehensive plan amendment and 9 TRID planning study as follows: 10 (1) Local municipalities and counties shall not use such 11 revenues for general government purposes, and a public 12 transportation agency shall not use such revenues for transit 13 capital investments elsewhere on the public transportation 14 system. 15 (2) Local municipalities, school districts and the 16 county shall establish an amortization schedule for receipt, 17 investment and expenditure of any TRID tax revenues, not to 18 exceed 20 years, similar to the amortization schedule in the 19 act of July 11, 1990 (P.L.465, No.113), known as the Tax 20 Increment Financing Act. However, where a municipal or joint 21 municipal authority has been created, it shall be responsible 22 for fixing the amortization schedule and for defining the 23 TRID capital improvement plan. 24 Section 703. Applicability of other statutes. 25 Local municipalities, counties, transportation authorities, 26 the public transportation agency and local property owners are 27 encouraged and may make maximum use of existing laws and 28 regulations to advance and further implement TRID purposes. 29 Without limitation, application of the following acts and

30 similar acts, as well as pertinent Federal programs and

1 statutes, are consistent with the intent of TRID implementation: 2 (1) Act of May 24, 1945 (P.L.982, No.383), known as the 3 Redevelopment Cooperation Law. 4 (2) Act of May 24, 1945 (P.L.991, No.385), known as the 5 Urban Redevelopment Law. 6 (3) Act of December 1, 1977 (P.L.237, No.76), known as 7 the Local Economic Revitalization Tax Assistance Act. 8 (4) Act of July 9, 1985 (P.L.187, No.47), known as the 9 Transportation Partnership Act. 10 (5) Act of July 11, 1990 (P.L.465, No.113), known as the 11 Tax Increment Financing Act. 12 (6) Act of July 11, 1996 (P.L.677, No.116), known as the 13 Infrastructure Development Act. 14 (7) Act of October 6, 1998 (P.L.705, No.92), known as 15 the Keystone Opportunity Zone and Keystone Opportunity 16 Expansion Zone Act. 17 (8) Act of December 20, 2000 (P.L.949, No.130), known as 18 the Neighborhood Improvement District Act. 19 Section 704. Private sector involvement. 20 Nothing described in this act shall preclude a private sector 21 entity from offering to implement or finance needed public 22 transportation or community improvements at the initiation of or 23 concurrent with proposed TRID-related real estate development. 24 CHAPTER 9 25 COMMUNITY INVOLVEMENT 26 Section 901. Public meeting to explain TRID and alternative 27 implementation approaches. 28 Community and public involvement in the establishment of 29 TRIDs is required. The municipality and the public 30 transportation agency shall jointly conduct at least one public

1 meeting in the proposed TRID area prior to the enactment of a 2 TRID, TRID planning study, comprehensive plan or zoning 3 amendment. The meeting is intended to explain the purpose and 4 components of the TRID and the alternative implementation 5 approaches. The public meeting or meetings shall be in addition 6 to any required local government public hearing or hearings 7 prior to comprehensive or multimunicipal plan amendment 8 adoption. However, nothing in this act shall relieve the TRID 9 management entity from conducting all public meetings required 10 by law, where the TRID is acting or seeking to act under the: 11 (1) Act of May 24, 1945 (P.L.991, No.385), known as the 12 Urban Redevelopment Law. 13 (2) Act of July 11, 1990 (P.L.465, No.113), known as the 14 Tax Increment Financing Act. 15 (3) Act of December 20, 2000 (P.L.949, No.130), known as 16 the Neighborhood Improvement District Act. 17 Section 902. Public meeting to review proposed joint 18 development plan and related improvements. 19 The municipality and the public transportation agency shall 20 jointly conduct at least one public meeting in the TRID area to 21 review the proposed joint development plan and its related

22 public improvements prior to implementation. 23 Section 903. Cooperation with neighborhood or community 24 representatives. 25 The municipality and the public transportation agency shall 26 encourage private sector real estate entities and land 27 developers to work proactively and cooperatively with pertinent 28 neighborhood or community representatives during the planning 29 and implementation of TRID development proposals. 30 CHAPTER 21

1 MISCELLANEOUS PROVISIONS 2 Section 2101. Repeal. 3 All acts and parts of acts are repealed insofar as they are 4 inconsistent with this act. 5 Section 2102. Effective date. 6 This act shall take effect in 60 days.

APPENDIX D – PROPOSED TRANSIT REVITALIZATION INVESTMENT DISTRICTS IN PENNSYLVANIA

Figure D.1 – Details and Status of Proposed TRIDs

Municipality(ies) Ambler (Montgomery County) Transit Authority(ies) SEPTA Station(s) Ambler

Ambler issued an RFP for their TRID study in June 2007. Carter van Dyke Associates Inc., a planning and landscape architectural firm based in Doylestown, was selected to undertake the TRID study. The goal of the Ambler study is to learn how TRID will impact the Ambler community specifically and neighboring communities in Montgomery County. As of February 2012, the planning study has been made available, but Ambler has yet to implement the TRID.

Municipality(ies) Bryn Mawr (Montgomery County) Transit Authority(ies) SEPTA / AMTRAK Station(s) Bryn Mawr

Bryn Mawr completed the planning study in 2009, though no further progress has been made in implementing the proposed TRID. As a result of the planning study several amendments had been proposed for Bryn Mawr’s current zoning ordinances. Due to the financial climate at the time of the planning study’s completion, stakeholders have yet to commit to an agreement.

Municipality(ies) Croydon (Bucks County) Transit Authority(ies) SEPTA / AMTRAK Station(s) Croydon

Croydon received a $75,000 TRID planning grant in 2006. addition to the planning study there has been a proposal put forth to for a TOD project including residential lofts, retail spaces, and public open space. The specifications for the TRID boundaries and value capture mechanism have not yet been accepted by all stakeholders.

Municipality(ies) Greensburg (Westmoreland County) Transit Authority(ies) Westmoreland County Transit Authority / AMTRAK Station(s) Greensburg Train AMTRAK Station/ Westmoreland County Transit Center

The City of Greensburg has recently began the planning study for a TRID centered around the Greensburg Train Station, one of the most heavily used stops on the AMTRAK route between Pittsburgh and Philadelphia, and the Westmoreland County Transit Center. Several public meetings have been

Econsult Solutions | 1435 Walnut Street, Ste. 300 | Philadelphia, PA 19102 | 215-717-2777 | econsultsolutions.com TRANSIT REVITALIZATION INVESTMENT DISTRICT (TRID) PLANNING REPORT FOR NOBLE STATION IN ABINGTON TOWNSHIP A-14 held to facilitate citizen participation in the process in order to address concerns about pedestrian access, vehicular transportation; commercial and industrial development; and historic preservation.

Municipality(ies) Lancaster City and Manheim Township (Lancaster County) Transit Authority(ies) AMTRAK Station(s) Lancaster AMTRAK Station

In cooperation with the City of Lancaster and Manheim Township, the Lancaster County Planning Commission has prepared a revitalization strategy for the transit hub and redevelopment area that exists around the Lancaster City AMTRAK Station, known as the Gateways Area. Though redevelopment efforts have commenced around the Lancaster station, the TRID has yet to be implemented.

Municipality(ies) Marcus Hook (Delaware County) Transit Authority(ies) SEPTA / AMTRAK Station(s) Marcus Hook (R2)

The assistance of the Pennsylvania Environmental Council, the Borough has completed the TRID planning study. Marcus Hook has already received a developer’s proposal to build a mixed-use facility at a vacant site located less than 100 yards from the SEPTA rail station. The proposal includes at least 120 residential units with a mix of rental and for-sale units. Despite progress with development, the TRID has yet to be implemented.

Municipality(ies) Mt. Lebanon and Dormont (South Hills) (Allegheny County) Transit Authority(ies) Port Authority of Allegheny County Station(s) Potomac, Dormont Junction, and Mt. Lebanon

Allegheny County received a $225,000 TRID planning grant to investigate potential development opportunities in the vicinity three light rail stations. The report was completed in May 2008. The three transit stations are in such close proximity that the respective half-mile TRID boundaries of each overlap thereby forming on big TRID district. This represents the first multi-transit stop TRID district proposed.

Municipality(ies) Rochester (Beaver County) Transit Authority(ies) Beaver County Transit Authority Station(s) Beaver County Transit Authority Transit Center

Rochester was the first community to receive a TRID planning grant for a TRID centered around the Beaver County Transit Authority’s transit center, which includes a bus terminal, a park-n-ride facility, and a consumer information center. The planning study was focused on creating redevelopment opportunities around the transit center. TRID revenue would be used to for improvements in bus circulation, passenger and waiting areas at the transit center, as well as pedestrian improvements in the area surrounding the center.

Municipality(ies) Pittsburgh (Allegheny County) Transit Authority(ies) Port Authority of Allegheny County Station(s) Eastside

The Eastside Station area was studies as a potential TRID site in order to fill funding gaps from efforts spearheaded by the City of Pittsburgh and East Liberty Development, Inc. The TRID has garnered support from the City and local school district, as well as widespread attention due to previous redevelopment focus on the East Liberty area. Despite stated interest in the effort by at least one developer, the TRID has yet to reach implementation

Municipality(ies) Pittsburgh (Allegheny County) Transit Authority(ies) Port Authority of Allegheny County Station(s) Beechview

The TRID planning study for Beechview was completed in 2011; the study team was led by Interface Studio LLC. The study received funding from a number of sources, including the State of Pennsylvania Department of Community and Economic Development. The TRID has yet to be implemented

Municipality(ies) Pittsburgh (Allegheny County) Transit Authority(ies) Port Authority of Allegheny County Station(s) Lawrenceville, Strip District

A Value Capture study for the Strip District and Lawrenceville areas was completed in 2012 by the Pittsburgh Community Reinvestment Group, which explored the applicability and potential value of implementing a TRID. No further progress is known to have been undertaken.

Municipality(ies) Philadelphia (Philadelphia County) Transit Authority(ies) SEPTA, AMTRAK Station(s) 46th Street Station, Temple Station

The TRID planning study for the 46th Street Station and Temple Station areas was completed in 2007 by Interface Studio LLC and Econsult Corporation. Following completion of the plan, the Temple Regional Rail Station received over $3 million in grants from the Home Depot Foundation and the State of Pennsylvania. While efforts still move forward, a changing economic climate and changing tax structures have delayed implementation.

Source: Econsult Solutions, Inc. (2013)

Table D.1 – Additional Data on Boundaries and Value Capture Methods from Selected Proposed TRIDs

TRID TRID Boundary Details Value Capture Details The Value Capture structure was devised by Was expanded throughout design process separating the TRID area into sub-areas due to fiscal analyses which targeted according to the property type, infrastructure, additional property area as underdeveloped and development needs. Value Capture was Marcus Hook and otherwise necessary to raise enough then decided for each of those areas financing. Agreed upon by the Borough, separately. The base capture of the primary School District, and the County area was set to be 30% of the tax increment above current tax yield The Boundary was drawn to capture the commercial development area around the 80% value capture rate for Montgomery Bryn Mawr south side of Bryn Mawr station along rt. 30, County and Lower Merion twp, and 25% for but excluding most residential and Lower Merion School District institutional (hospital, university) area. Specific Boundaries all within 1/4 mile of the Ambler Station. Selected to capture vacant, 35% of tax increment above current tax yeild Ambler underutilized, and otherwise developable for area proposed by the new development land TRID Boundary proposed along major corridor, defined at the parcel level. Slightly 2% "TRID Payment" in lieu of ordinary ad Croydon exceeds 1/2 mile boundary on one side, but valorem taxes, 50% of which will be would be permitted based on "land use and reinvested in the TRID zoning for parcels outside radius" Source: Econsult Solutions, Inc. (2013)

APPENDIX E – STAKEHOLDER INTERVIEWS CONDUCTED

Person Interviewed: Fred Snow – Brandolini Development Group TRID Report Team Members: Dave Schwartz, Ian Bowen Location: Brandolini Corporate Headquarters – Berwyn, PA Date and Time: 1/17/2013, 10:00 a.m.

Person Interviewed: Dave Peterson and John Brady – Bryner Chevrolet TRID Report Team Members: Dave Schwartz Location: Bryner Chevrolet Jenkintown (next to the Noble Station) Date and Time: 1/17/2013, 3:30 p.m.

Person Interviewed: Chase McDaniel – Don Del Associates TRID Report Team Members: Dave Schwartz, Ian Bowen Location: Don Del Offices in Ardmore Date and Time: 1/17/2013, 11:30 a.m.

Person Interviewed: Andrew Svekla – DVRPC, Mike Narcowich – Montgomery County, Mathew Lahaza – Abington Economic Development Committee TRID Report Team Members: Dave Schwartz Location: Abington Township Building Date and Time: 1/18/2013, 10:30 a.m.

Person Interviewed: Amanda (did not provide a last name) – Rydal East/West TRID Report Team Members: Dave Schwartz Location: Rydal West Management Offices Date and Time: 1/18/2013, 9:00 a.m.

Person Interviewed: Patricia Morrell – Rydal Park TRID Report Team Members: Dave Schwartz Location: Rydal Park Date and Time: 1/23/2013, 10:00 a.m.

Person Interviewed: Jim Scully – Scully Company TRID Report Team Members: Dave Schwartz

Location: Phone Call Date and Time: 1/30/2013, 4:15 p.m.

Person Interviewed: Jody Holton - SEPTA TRID Report Team Members: Dave Schwartz Location: Conference Call Date and Time: 1/23/2013, 3:00 p.m.

Person Interviewed: Eric Sussman – Sussman Automotive TRID Report Team Members: Dave Schwartz, Elaine Rosenberg Location: Sussman Corporate Headquarters Date and Time: 1/16/2013, 3:00 p.m.

APPENDIX F – DEVELOPMENT AND IMPROVEMENT RECOMMENDATIONS ADVANCED IN PAST PLANNING STUDIES

AKRF’07 M&T’10 DCI’12

Old York Road Corridor Full Title of Old York Road Corridor Abington Noble Transit- Improvement Plan Market Study Improvement Study Oriented Development Plan Study

Broad study providing analysis of assets, issues, Market Study focusing on and potential for the Old In-depth development economic and demographic Brief York Road Corridor covering analysis and plan for the conditions as of 2007, in Description market, transit, traffic, and TOD area around the Noble support of broader corridor other development topics, station improvement study and providing development concepts and ideas

Uses the AKRF Market Composed after previous Study to formulate Relationship two reports, and covers Analysis used to support development concepts for between much smaller area. Uses McCormick Taylor Study various economic and Studies coverage from previous market-related development reports to educate approach targets

AKRF MT DCI Mtgs/ Recommendation R’ship to Notes ’07 ’10 ’12 Ivws TRID Site Hotel market explored in AKRF market study, provisional planning 1 Economy-rate hotel market underserved √ √ √ √ Med explored in M&T study, and potential hotel development in TOD site explored in DCI report. Unpopular among some stakeholders 2 Possible need for condominiums √ √ Med

EDC feels office demand is low; Scully’s Noble Plaza has unleased 4th 3 Increased demand for office space √ √ Med floor office space. 4 More "sit-down" restaurant retail √ √ √ √ Hi 5 More "small retail"/boutique retail √ √ √ √ Hi 6 Pedestrian Bridge crossing train tracks √ √ √ Hi

7 Mixed use garage located within TOD site √ √ √ √ Hi Out of Potential TRID boundary, and not a target for value capture, but 8 Development of Rydal Park into residential space √ √ Med will impact demand and usage in TRID area Mixed-use retail and other transit-oriented use centered 9 √ √ √ √ Hi around 1/4 mile of Noble Station Zoning provisions along Fairway for siting buildings "up-to- 10 √ √ Hi street" 11Maintain "main street feel" with building facades √ Med

Increase "main street feel" with sidewalk amenities 12including foliage, benches, amenity spaces, and other √ √ √ Hi streetscaping efforts New street north of Fairway and parallel for three blocks 13off of Old York Road, and tying back to the Fairway after √ Lo three blocks New street connecting the Fairway with the proposed east- 14west street north of the Fairway, and extending further into √ Lo residential usage

AKRF MT DCI Mtgs/ Recommendation R’ship to Notes ’07 ’10 ’12 Ivws TRID Site Extension of Baeder Road through TOD zone, passing 15 √ √ Hi Noble Station and connecting to Fairway 7-Story mixed-use parking garage “wrapped” in residential 16 √ √ Hi and retail Improve the Baeder Road/Noble Plaza & Old York Road Coordinate with Wawa planning & traffic studies by Goodman 17 √ √ √ Hi intersection Properties South Station Park development: playground, benches, 18 √ √ Med lighting, drop-off location Street A – located between Noble Plaza and Noble Square 19 √ √ Hi would connect Old York Road to The Fairway The Fairway and Street A/Walgreens Driveway - Left-turn 20 √ Hi lanes on both approaches The Fairway and Street A/Walgreens Driveway - Align with 21 √ √ Hi Walgreen’s driveway The Fairway and Street A/Walgreens Driveway - Signalize 22 √ √ Hi intersection Altered cross section on The Fairway - 16’ median, two 11’ 23lanes (one in each direction), 4’ buffer zone, 5’ bike lanes, √ Hi 12’ combined rainwater planter & sidewalk Old York Road and the Fairway Pedestrian Improvements 24 √ √ Hi - Bump out on northeast corner Old York Road and the Fairway Pedestrian Improvements 25 √ Hi - Count down signal heads Extend Baeder Road to connect to Street A near mixed- 26 √ √ Med use garage entrance

AKRF MT DCI Mtgs/ Recommendation R’ship to Notes ’07 ’10 ’12 Ivws TRID Site The Fairway and Rydal Road - Re-align roadway to form a 27T-intersection with Rydal Road westbound as a through √ Med movement to The Fairway The Fairway and Rydal Road - Two lanes in the 28 √ Med westbound direction The Fairway and Rydal Road - Dedicated turn lanes on 29 √ Med Rydal Road Rydal Road and Susquehanna Road - Restripe right-turn Intersection outside of potential TRID boundary, but is an important area 30lanes as shared thru-right turn lanes that would terminate √ Lo of focus outside of TRID considerations (may have consideration for east of the intersection redevelopment around Rydal Station) Stormwater management streetscaping to include 31 √ √ √ Hi Rainwater Planters and Rainwater Tree-pits Dedicated bike lanes or sharrows along proposed streets 32 √ √ √ Hi and The Fairway Dedicate plaza space and other amenity space along 33proposed streets, or other areas around TOD site and √ √ √ Hi main Fairway retail area Rydal Road and Susquehanna Road - Potential for 34 √ Lo Possible Use, previously unexplored in detail roundabout Coordinate with Wawa planning & traffic studies by Goodman 35Old York Road & Fairway Intersection reconfiguration √ √ Hi Properties Is Baeder Road extension into TRID area still a viable 36 √ Hi Question moving forward for Stakeholders concept? Concern may be solvable with recommendations here, should be 37Community traffic safety concerns at Hilltop Road √ Hi explored with stakeholders. Coordinate with Wawa planning & traffic studies by Goodman Properties 38Widen Noble Plaza driveway entrance to 20’ √ √ Hi

Source: Econsult Solutions, Inc. (2013)

APPENDIX G – CURRENT CHARACTERISTICS OF PARCELS LOCATE D WITHIN THE PROPOSED TRID BOUNDARIES

Figure G.1 – Density of Parcels within the Proposed TRID Boundaries

Source: CHPlanning (2013)

Figure G.2 – Leasable Square Feet within the Proposed TRID Boundaries

Source: CHPlanning (2013)

Figure G.3 – Assessed Value of Parcels within the Proposed TRID Boundaries

Source: CHPlanning (2013)

Figure G.5 – Assessed Value per Square Foot of Parcels within the Proposed TRID Boundaries

Source: CHPlanning (2013)

APPENDIX H – COMPOSITION OF INCREASE IN ASSESSED VALUE WITHIN TRID BOUNDARIES

Figure H.1 – Composition of Increase in Assessed Value within TRID Boundaries for Phase 1a

Source: Econsult Solutions, Inc. (2013)

Figure H.2 – Composition of Increase in Assessed Value within TRID Boundaries for Phase 1b

Source: Econsult Solutions, Inc. (2013)

Figure H.3 – Composition of Increase in Assessed Value within TRID Boundaries for Phase 2

Source: Econsult Solutions, Inc. (2013)

Figure H.4 – Composition of Increase in Assessed Value within TRID Boundaries for Phase 3

Source: Econsult Solutions, Inc. (2013)

APPENDIX I – COMPOSITION OF INCREASE IN PROPERTY TAX REVENUES WITHIN TRID BOUNDARIES

Figure I.1 – Composition of Increase in Property Tax Revenues within TRID Boundaries for Phase 1a

Source: Econsult Solutions, Inc. (2013)

Figure I.2 – Composition of Increase in Property Tax Revenues within TRID Boundaries for Phase 1b

Source: Econsult Solutions, Inc. (2013)

Figure I.3 – Composition of Increase in Property Tax Revenues within TRID Boundaries for Phase 2

Source: Econsult Solutions, Inc. (2013)

Figure I.4 – Composition of Increase in Property Tax Revenues within TRID Boundaries for Phase 3

Source: Econsult Solutions, Inc. (2013)=

APPENDIX J – DRAFT FORM OF TRID AGREEMENT20

THIS AGREEMENT ("Agreement") is made as of <> by and among XXXXXXXXXX TOWNSHIP, PENNSYLVANIA, an incorporated municipality of the Commonwealth of Pennsylvania ("Township"), XXXXXXXXXX SCHOOL DISTRICT, a political subdivision of the Commonwealth of Pennsylvania (the "School District"), XXXXXXXXXX COUNTY, a county of the Commonwealth of Pennsylvania (the “County”) (the Township, School District, and County being sometimes collectively referred to as the "Taxing Bodies”), SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY, a body corporate and politic existing under the laws of the Commonwealth of Pennsylvania ("SEPTA”), <>("Lender"), and XXXXXXXXXX TRID, INC, a Pennsylvania non-profit corporation (“Management Entity.”).

Background:

WHEREAS, the Transit Revitalization Investment District Act, Act of December 8, 2004, P.L. 1801, No. 238 (collectively, the "Act") empowers municipalities, counties, and public transportation agencies to work cooperatively to establish Transit Revitalization Investment Districts (“TRID”) and the appropriate mechanisms to capture the real estate taxation and other values added by development activities for reinvestment in the transit system and local communities

WHEREAS, the Management Entity shall prepare a detailed project plan (the "Project Plan") which will be based on and informed by the findings of the TRID Planning Study; attached hereto as Exhibit A, for the redevelopment of the area (the “TRID Area”) around the Noble Station on SEPTA’s Regional Rail Line (the “Station”), and the TRID Planning Study was formally presented to the Township for its review and approval in accordance with the Act;

WHEREAS, the Township believes that it is necessary to establish the TRID according to accepted transit oriented development principles, and to promote transit oriented development in the TRID Area;

WHEREAS, the TRID Act provides the Township and SEPTA to work collaboratively towards specific development projects that adhere to those principles;

WHEREAS, to support the TRID, the Township, the School District, the County, and SEPTA, are willing to provide the Management Entity with the resources set forth in this agreement;

20 Footnotes in this appendix refer to commentary about the Agreement, and should not be included in the Agreement itself.

WHEREAS, without the assistance of the parties as set forth in this agreement, the Management Entity would not be able to undertake this TRID;

WHEREAS, after public hearing held on <>, as required by the Act, the Township approved Bill No. <> signed by the Township Manager of the Township on <> (the "Ordinance") attached hereto as Exhibit B, authorizing the creation of the TRID and Management Entity in accordance with the Act, adopting the TRID Planning Study as required by the Act;

WHEREAS, Lender desires to lend to the Township 21 and the Township desires to borrow from Lender the sum of <> pursuant to that certain Note from the Township to the order of Lender of even date herewith (the "TRID Note"), which shall be secured by the pledge of the TRID Fund (as defined below) pursuant to a pledge agreement as the same may be modified and amended from time to time (the "Pledge Agreement”) as set forth herein as Exhibit C, attached hereto;

WHEREAS, the Township intends to lend the proceeds of the TRID Note to the Management Entity to be used in the TRID pursuant to the Project Plan.22

WHEREAS, the Taxing Bodies, Management Entity, the Township, and the Lender desire to set forth the terms by which the TRID Note will be issued and repaid, and other mutually acceptable terms and conditions with respect to such matters, all in accordance with the Act.

NOW, THEREFORE, for and in consideration of the foregoing and the respective rights and obligations of the parties herein set forth and incorporating the Background set forth above, the parties hereto, intending to be legally bound, hereby covenant and agree as follows:

1). TRID.

1.1 The TRID shall mean the land and improvements located within a half-mile radius of the “Station”, as more particularly described in Exhibit D, attached hereto, which contains said properties (as hereinafter defined) and nothing else.

1.2 The TRID shall exist for a term of twenty years (the "Term") commencing <>, (the "TRID Effective Date") and terminating <> (the "Termination Date").23

21 Or the County or some other borrowing entity; the actual borrowing entity has not yet been determined. 22 See previous footnote.

1.3 TRID Management Entity. The Management Entity responsible for implementing the Project Plan within the TRID will be established as a Pennsylvania non-profit corporation and shall be known as NOBLE TRID, INC.

1.3.1 TRID Management Entity Composition. Management Entity responsible for implementing the TRID Plan shall be comprised of at least one member from or appointed by the following:  The Township  The School District  The County  SEPTA

2). Activities and Commitments of Each Party

2.1 The Township. In addition to the requirements explicitly enumerated in this agreement, the Township also agrees to maintain within the TRID the same level of municipal programs and services that were provided within the TRID before its establishment. The Township will not use TRID funds to substitute for municipal spending on capital improvements or ongoing maintenance, and agrees to work with the TRID Management Entity to encourage transit and related infrastructure investments that are consistent with its own capital and programmatic goals. The Township shall also execute and deliver to Lender the TRID Note in the original principal amount of <>. The TIF Note shall be substantially in the form attached hereto as Exhibit E and secured by the Pledge Agreement. The Township shall lend the proceeds of the TRID Note (the "Project Loan") to the Management Entity to be used solely in payment of Project Costs (as defined in the Project Plan), which Project Loan shall be evidenced by Management Entity's Note to he Township substantially in the form of Exhibit E (the "Project Note").24

2.2 The School District. In addition to the requirements explicitly enumerated in this agreement, the School District also agrees to maintain within the TRID the same level of municipal programs and services that were provided within the TRID before its establishment.

2.3 The County. In addition to the requirements explicitly enumerated in this agreement, the County also agrees to maintain within the TRID the same level of municipal programs and services that were provided within the TRID before its establishment. The County will not use TRID funds to substitute for municipal spending

23 Recall that the recommendation is actually that the TRID is segmented into phases, in order for each phase to have the full20- year period. Therefore, a separate TRID Agreement will be needed for each phase. 24 This responsibility may be shifted to the County or some other borrowing entity; the actual borrowing entity has not yet been determined.

Econsult Solutions | 1435 Walnut Street, Ste. 300 | Philadelphia, PA 19102 | 215-717-2777 | econsultsolutions.com TRANSIT REVITALIZATION INVESTMENT DISTRICT (TRID) PLANNING REPORT FOR NOBLE STATION IN ABINGTON TOWNSHIP A-38 on capital improvements or ongoing maintenance, and agrees to work with the TRID Management Entity to encourage transit and related infrastructure investments that are consistent with its own capital and programmatic goals.

2.4 SEPTA. In addition to the requirements explicitly enumerated herein, SEPTA also agrees to maintain within the TRID the same level of transit programs and services that were provided within the TRID before its establishment. SEPTA also agrees to maintain all improvements made to any SEPTA transit stop using TRID Funds. SEPTA also will not use TRID funds to substitute for spending from their capital budget that was included in SEPTA long-range capital budget before the establishment of the TRID.

2.5 TRID Management Entity. In addition to the requirements explicitly enumerated herein this agreement, as well as the requirements of the TRID Act and the Ordinance establishing the TRID Management Entity, the Management Entity agrees to file the necessary legal documents to form a Pennsylvania non-profit corporation and adopt the necessary by-laws.

2.5.1 Management Entity shall construct and, at all times, maintain and operate the Project as contemplated by the Project Plan and the Ordinance. The TRID Management Entity shall also be responsible for deciding which aspects of the project plan are implemented and when.

2.5.2 Management Entity shall apply funds received in connection with the Project solely in partial payment of Initial Project Costs (as defined in the Project Plan) associated with the Project.

2.5.3 Management Entity shall serve as a conduit through which SEPTA can enter into joint development agreements with private developers to facilitate land assembly for large-scale projects and other actions that expedite the development process and ensure greater coordination between land use and transportation planning.

2.5.4 Progress Reports. Management Entity shall report to the Taxing Bodies and SEPTA on the progress of its implementation of the TRID Planning Study at the first- regularly scheduled meeting of the taxing-bodies following the first anniversary of the execution of this Agreement and each anniversary of said execution thereafter until the termination date, the. Such report shall include at least the following information and may contain other such information with regard to the plan as the management entity wishes to present of the Taxing Bodies and SEPTA may reasonably require:

1) Status of construction of the Project Improvements;

2) Actual Project Improvement costs compared to Plan estimates;

3) Actual start and completion dates of Project Improvements in the TRID District compared to Plan estimates; and

4) Estimated start date of Project Improvements not yet commenced at the date of report.

The Management Entity shall from time to furnish such other reports on specific matters not addressed by the foregoing as the Taxing Bodies and SEPTA may reasonably require.

Upon completion of the Project Plan, the Management Entity shall submit a report certifying that the Project Improvements have been completed in accordance with the Plan and that it is in compliance with all other provisions of this agreement to the Taxing Bodies and SEPTA.

2.5.5 The Management Entity shall provide the Township and the Lender with reasonable access to the TRID and TRID-related records upon reasonable notice for purposes of verifying compliance with the Project Plan and this Agreement.

2.5.6 The Management Entity shall continue to meet with civic, associations, business associations, community/neighborhood groups, and in other public forums to receive input from the public and to provide the public with information about the progress of the project.

3). Project. The Management Entity shall undertake such projects as included in the Project Plan and as inferred by the TRID Planning Study, and that conforms to the transit oriented development principles adhered to by the Township and SEPTA.

4). The Loan.25

4.1 The Township shall execute and deliver to Lender the TRID Note in the original principal amount of <> The TRID Note shall be substantially in the form attached hereto as Exhibit C and secured by the Pledge Agreement.

4.2 The Township shall lend the proceeds of the TRID Note (the "Project Loan") to the Management Entity to be used solely in payment of Project Costs (as defined in the Project Plan), which Project Loan shall be evidenced by Management Entity's Note to the Township substantially in the form of Exhibit E (the "Project Note").

4.3 Management Entity may arrange for refunding of the Project Loan, up to the outstanding principal balance of the Project Loan at the time of such refunding, from time- to time (“Substitute Loan”), in which case the Substitute Loan maybe secured by the

25 See previous footnote.

Econsult Solutions | 1435 Walnut Street, Ste. 300 | Philadelphia, PA 19102 | 215-717-2777 | econsultsolutions.com TRANSIT REVITALIZATION INVESTMENT DISTRICT (TRID) PLANNING REPORT FOR NOBLE STATION IN ABINGTON TOWNSHIP A-40 pledge of TRID Revenues so long as the terms of the Substitute Loan do not require payments by the Township in excess of the debt service paid by Real Estate Tax Increments for the initial TRID Note and so long as the term of the Loan does not extend beyond the Termination Date. The Substitute Loan shall be evidenced by a substitute TRID Note and such other documentation as is reasonably satisfactory to the parties hereto. The lender under the Substitute Loan shall be deemed to be Lender for all purposes of this Agreement. Whenever herein there is a reference to the TRID Note, any Substitute TRID Note shall be included therein.

4.4 Payments on the TRID Note shall be made from amounts in the TRID Fund. "TRID Fund" shall mean the sum of the Real Estate Property Tax Increment (as hereinafter defined) as have accumulated as a result of the payment of TRID Revenues (as hereinafter defined) by the Taxing Bodies to the Township. To the extent that, after payment of scheduled principal and interest (including any financing fees or penalties) on the TRID Note, there remain monies in the TRID Fund, such monies shall be paid and applied as set forth in Section 6.

4.5 The Township shall assign the Project Note to Lender and deliver the Pledge Agreement to Lender.

4.6 To the extent that at any time there is a deficiency in the TRID Fund necessary to pay the TRID Note, Lender shall utilize payments due under the Project Note (to the extent available under the terms of the Project Note) in satisfaction of the TRID Note.

5). TRID Revenues. "TRID Revenues" shall mean the sum of the Real Estate Property Tax Increment (as defined below) which are collected by the Taxing Bodies from the Project during the term of the TRID District.

5.1 Definitions.

5.1.1 For purposes of this Agreement, references to "tax revenue" or "tax revenues" shall not include penalties and interest collected by the Township as a result of any late payments thereof.

5.2 Real Estate Taxes.

5.2.1 The "Real Estate Tax Base" shall mean an amount on account of real estate taxes determined by the Philadelphia Board of Revision of Taxes based on the assessed value of all land and improvements in the TRID as of the TRID Effective Date. Real Estate Tax Revenues collected each year for the appropriate tax year during the Term of the TRID up to the Real Estate Tax Base shall inure to the benefit of the Township, School District, and County in accordance with the Act.

5.2.2 The "Real Estate Tax Increment" shall mean all incremental amounts in real estate tax revenue over the Real Estate Tax Base collected each year until termination of the TRID. The Real Estate Tax Increment each year shall be eligible under the Act and is hereby authorized to fund Eligible Project Costs in accordance with the Act. Such Real Estate Tax Increment may result either from an increased assessment of the Project or increased millage rate.

5.3 Payment in Lieu of Taxes. The Management Entity shall allow for and encourage tax-exempt property owners located within the District to provide in-kind services or a financial contribution to the TRID Fund, if not assessed, in lieu of a property tax increment.

6). Collection of TRID Revenues.26

6.1 The Taxing Bodies hereby agree that all TRID Revenues received by the Taxing Bodies shall be paid over to the Township for deposit into the TRID Fund in accordance with the Act and in accordance with the time-frames described below.

6.1.1 The Taxing Bodies shall pay the Real Estate Property Tax Increment to the Township within forty-five (45) days after receipt thereof by the Taxing-Bodies (except as to the first installment payment pursuant to this Agreement which shall be paid to the Township within ninety (90) days after receipt thereof). Within thirty (30) days of the Township’s receipt of the Real Estate Property Tax Increment from the Taxing Bodies, the Township shall transfer all such sums to Lender.

6.2 The Real Estate Property Tax Base shall inure each year to the benefit of the Township in accordance with their current respective millage rates and governing law.

6.3 With respect to the collection of delinquent taxes levied within the TRID, the Taxing Bodies shall enforce their rights in the same manner as with respect to the collection of delinquent taxes and/or liened real estate property taxes applied to general municipal and/or school district purposes. The Township agrees to direct the appropriate assessment officers and employees to identify upon the assessment roll those parcels of property or portions thereof which are located within the TRID. The Township shall direct its officers and employees to make the appropriate notation on their tax rolls for such identification of parcels of real property or portions thereof located within the TRID. The Taxing Bodies shall authorize and direct their respective officers or agents to cooperate with the Township and to tender the TRID Revenues which are collected as delinquent taxes to the Township at the times and in the manner required by the terms of this Agreement.

26 See previous footnote.

6.4 All monies in the TRID Fund shall be deposited in such interest bearing investments as may be selected by the Township and the Management Entity and approved by Lender with all such interest to accrue to the benefit of and become part of the TRID Fund. The TRID Fund shall be maintained in an account in a financial institution designated by Lender, reasonably acceptable to the Township, and Lender shall have a security interest in the TRID Fund evidenced by appropriate security documents satisfactory to Lender and the Township. Lender hereby agrees to indemnify, defend, pay, protect and hold harmless the Township for any loss or damage suffered by the Township arising out of the maintenance of the account previously designated and arising out of the grant of the security interest in the account to Lender.

7). TRID Fund.27

7.1 Pledge. In accordance with the Act, the Township has pledged to the Lender, as security for the payment of the TRID Note, all rights of the Township to the TRID Revenues and the TRID Fund. The Township agrees for the benefit of Lender and Management Entity that it shall not grant any other liens or interests in or to the TRID Revenues or the TRID Fund or take any other actions that would impair the rights of the Lender hereunder; the pledge is evidenced by the Pledge Agreement. The Pledge Agreement may be assigned by Lender at any time prior to the Termination Date without the consent of the Township; provided, however, the assignee shall give notice of such assignment to the Township in accordance with Section 12.11 hereof. Thereafter, the Township agrees to follow the directions of such assignee with respect to Section 7.2 of this Agreement.

7.2 Disbursal. The Township shall disburse sums from the TRID Fund from time to time as follows and in the following order of priority:

7.2.1 After payment of the one percent (1%) processing fee due to the Township from each repayment amount, in payment of principal, interest thereon and any financing fees, penalties or other amounts due in respect of the TRID Note (and such payment shall be credited under the Project Note), as such payments are due.

7.2.2 Any balance remaining in the TRID Fund after disbursals as set forth above shall be paid to Lender on account of the Project Note and applied to the prepayment of principal of the TRID Note.

7.3 On the Termination Date, after payment of principal and accrued and unpaid interest (including financing fees and penalties) on the TRID Note, the Township shall pay all amounts remaining in the TRID Fund which are not required for payment under

27 See previous footnote.

Paragraphs 7.2.1 or 7.2.2 to the Management Entity to be used to fund maintenance and upkeep of the improvements made.

8). Private Sector Development Agreements. In furtherance of this agreement the Management Entity can enter into development agreements with pertinent private sector develop organization or organizations to implement the proposed TRID. The development agreement shall stipulate the final project scope as well as the partners’ roles, responsibilities, financing arrangements, schedule of improvements and exactions or contributions to the project.

9). Limitation of Liability. Notwithstanding anything to the contrary contained in the TRID Note or this Agreement, the Taxing Bodies shall not have any liability hereunder or under the TRID Note or otherwise in connection with the transactions contemplated by the TRID Note or this Agreement, except to the extent TRID Revenues are actually received by the Taxing Bodies. Under no circumstances shall the TRID Note or the covenants hereunder constitute a general obligation of the Taxing Bodies. Neither the officials of the Taxing Bodies nor any person executing the TRID Note shall be liable personally on any such notes by reason of the issuance thereof. The TRID Note, and any replacement notes or bonds, shall expressly state, and the parties hereby acknowledge, that such notes or bonds have been issued to accomplish the public purposes of the Act and shall be conclusively deemed, to the fullest extent permitted by the Act (including without limitation Section 9(f) thereof), in any suit, action or proceeding involving the validity or enforceability of such note, bond or security therefore, to have been issued for such purpose. The Taxing Bodies shall have no obligations in connection with the transactions contemplated by this Agreement except for those expressly stated herein and in the Act.

10). Defaults. The occurrence of any of the following events or conditions shall constitute an “Event of Default” hereunder:

10.1 Default of any of the Management Entity’s covenants set forth herein; or

10.2 Any other default in the payment or performance by the Management Entity or its affiliates under this Agreement, the TRID Note, or the Project Note when such payment or performance is due; or

10.3 Use by the Management Entity of the proceeds of the TRID Loan for other than Initial Project Costs (as defined in the Project Plan).

11). Remedies. Upon the occurrence of any Event of Default, then the entire unpaid principal under the Project Note plus all interest accrued thereon plus all other sums due and payable to the Township hereunder shall, at the option of the Township, become due and payable immediately, without presentment, demand, notice of nonpayment, protest, notice of protest or other notice of dishonor, all of which are hereby expressly waived by the Management Entity. In addition to the foregoing, upon the occurrence of any Event of Default, the Township may forthwith exercise singly, concurrently, successively or otherwise any and all rights and remedies available to the Township by law, equity, statute or otherwise.

12). Miscellaneous.

12.1 Acknowledgment. The Township, School District, and County acknowledges that in accordance with the Act they have been afforded a full opportunity to participate and comment in the public hearing process for the development and creation of the TRID by receipt of the statutorily required written and public notice thereof.

12.2 Issuing Authority. The Taxing Bodies hereby appoint the Township 28 as the authority charged with preparing and implementing the approved Project Plan and hereby designate the Township as the issuing authority under the provisions of the Act, for the issuance of the TRID Note.

12.3 Amendments to Project Plan. Proposed real estate development or redevelopment may trigger additional needs for transit improvements and community facility improvements or support facilities. The Taxing Bodies acknowledge that the Management Entity may propose amendments to the Project Plan as are deemed advisable. No such amendment shall be effective until approved by the appropriate official action of the governing boards of each of the Taxing Bodies in accordance with the Act. No amendment to the Project Plan shall result in the reduction of TRID Revenues, unless approved by the Lender and the Taxing Bodies.

12.4 Amendments to this Agreement. The parties to this Agreement may by written amendment to this Agreement, executed by the party or parties to be charged, modify any clauses or provisions of the within Agreement to further the purposes of the Project Plan or any amendments thereto.

12.5 Severability. In the event any provision, section, sentence, clause or part of this Agreement is determined by a court of competent jurisdiction to be invalid and unenforceable, such determination shall not affect the validity or effect of the remaining provisions which shall remain in full force and effect and shall be liberally construed in

28 See previous footnote.

Econsult Solutions | 1435 Walnut Street, Ste. 300 | Philadelphia, PA 19102 | 215-717-2777 | econsultsolutions.com TRANSIT REVITALIZATION INVESTMENT DISTRICT (TRID) PLANNING REPORT FOR NOBLE STATION IN ABINGTON TOWNSHIP A-45 favor of Lender in order to effectuate the provisions of this Agreement. In addition, in no event shall the rate of interest on the TRID Note exceed the maximum rate of interest permitted to be charged by applicable law.

12.6 Successors and Assigns. Any and all covenants, promises and agreements set forth in this Agreement shall bind and inure to the benefit of the respective successors and assigns of the parties hereto, including, without limitation, any subsequent owner of the land and improvements in the TRID Area and any assignee, whether absolutely or collaterally, of the TRID Note.

12.7 Captions. The captions preceding the various Articles and Sections of the Agreement have been inserted solely for convenience of reference and shall not be used in construing this Agreement.

12.8 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same agreement.

12.9 Governing Law. This Agreement and the TRID Note, and the instruments and documents being delivered pursuant hereto, shall be construed by, and enforced in accordance with, the laws of the Commonwealth of Pennsylvania without giving effect to the principles of conflicts of law.

12.10 Reference to Documents. All references to any document referred to or described herein shall be deemed to refer to such documents as they may be substituted, replaced, amended, modified or recast from time to time whether or not in connection with any Substitute Loan.

12.11 Notices. All notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be sent by hand delivery or by registered or certified mail, postage prepaid, return receipt requested, or by recognized overnight courier service, addressed to the appropriate party at the following addresses (or at such other address as the respective party may hereafter designate by notice in writing in the manner specified above):

To Management Entity: XXXXXXXXXX TRID, Inc. with a copy to: The Management Entity’s Counsel

To Lender: [To be determined] with a copy to: Lender’s Counsel

To the Township: [To be determined]

To the School District: [To be determined] with a copy to: School District’s Counsel

To the County: [To be determined] with a copy to: County’s Counsel

To SEPTA : [To be determined] with a copy to: SEPTA’s Counsel

All such notices, requests and other communications shall be deemed to have been sufficiently given on the date delivered or refused Any notice, request or other communication may be given on behalf of any party by its respective counsel.

12.12 Indemnification.29 Management Entity will indemnify and hold harmless the Township and each member, director, officer, employee, attorney and agent of the Township for and against any and all claims, losses, damages or liabilities (including the reasonable costs and expenses of defending against any such claims) to which the Township or any member, director, officer, employee or agent of the Township may become subject, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise directly or indirectly out of and which are not the result of gross negligence or bad faith on the part of any of the foregoing, any loss or damage to property or injury to or death of or loss by any person that may be occasioned by any cause whatsoever pertaining to the Project or this Agreement or the TRID Note or the transactions contemplated thereby.

In case any action or proceeding is brought against the Township in respect of which indemnity may be sought hereunder, the Township shall give written notice of that action or proceeding to the Management Entity, and the Management Entity upon receipt of that notice shall have the obligation and the right to assume the defense of the action or proceeding; provided that failure of the Township to give that notice shall not relieve the Management Entity from any of its obligations under this Section 12.12 unless (and then only to the extent) that failure prejudices the defense of the action or proceeding by the Management Entity.

The indemnification set forth above is intended to and shall (i) include the indemnification of all affected directors, officers, agents and employees of the Township, and (ii) be enforceable by the Township to the fullest extent permitted by law. This Section 12.12 shall survive the termination of this Agreement.

29 See previous footnote.

IN WITNESS WHEREOF, each party to this Agreement has caused this Agreement to beduly executed on its behalf by its duly authorized representatives as document under seal, all as of the day and year first above written.

XXXXXXXXXX TOWNSHIP, PENNSYLVANIA By: Name: [to be determined] Title: [to be determined]

XXXXXXXXXX SCHOOL DISTRICT, PENNSYLVANIA By: Name: [to be determined] Title: [to be determined]

XXXXXXXXXX COUNTY, PENNSYLVANIA By: Name: [to be determined] Title: [to be determined]

THE SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY By: Name: [to be determined] Title: [to be determined]

LENDER By: Name: [to be determined] Title: [to be determined]

XXXXXXXXXX TRID, INC. By: Name: [to be determined] Title: [to be determined]

EXHIBIT A

TRID Planning Study

EXHIBIT B

Copy of Township Ordinance Establishing TRID Management Entity

EXHIBIT C

TRID Fund Pledge Agreement

EXHIBIT D

TRID District Boundary Description, List of Parcels, and Map

EXHIBIT E

TRID Note

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